Reasons to need miners in Blockchain

Blockchain: generalities

The blockchain is an electronic system where various data are stored. A storage technology, it has no control or central function. However, its information remains unfalsifiable to this day. This proves that its protection barrier is impenetrable.

The blockchain technology also demonstrates its clear character. The reason is the public access to the history of the use of its elements by users. Essentially, the transmission of information concerns transactions. These exchanges are divided into groups. Each grouping is called a block.

Bitcoin is often associated with blockchain, a virtual currency that has recently appeared. But because of its qualities, blockchain is a technology that can be used in many digital sectors. We can read article about it on the net. Like, we can cite the automatic execution of a transaction according to the terms and conditions established. In addition, there is the cyber security, stock exchange transactions, the banking sector especially in the back office etc..

Blockchain and mining

Mining here refers to crypto currency. Through sophisticated computer hardware, crypto is mined. Mostly, this is bitcoin mining with a crypto bot. Sometimes it is referred to as Ethereum mining. Note that bitcoin miners can work individually. But sometimes they also work in groups to maximize their rewards. In this case, it is called a mining pool.

By ethymology, blockchain means block chain. It is therefore the linking of several blocks. During a mining, the objective is the manufacture of block. Afterwards, it is added to the chain. Those who participate in the creation of blocks are called miners. In return for their help, they receive a reward. So on the bitcoin network, the reward is getting bitcoin.

In principle, the blocks that make up the chain are very detailed. From the time of mining, each block is certainly marked with the time and date of its conception. It will also be labeled with the number of transactions that form it.  But also, its hash and its size is added to it. By hash, we mean a function that secures the information contained in each block in addition to signing it particularly.

Blockchain and miners

Miner consists in creating several links of chain. The blocks of a chain are generally composed of various transactions. Thus, we talk about grouping one transaction to another. That said, during mining, each block must be valid. This is where the miners come in. Their role is to validate the transactions. To do their work correctly, they use computer tools.

You can mine with a computer or a phone. Only, their power must be above average. Basically, power here means the computing power that the hardware in question can provide to its user. Note that the creation of a block is a matter of solving complex mathematical problems. The transaction data to be processed is obviously encrypted.

Bitcoins are the result of mining processes. In view of its current value, people who can afford it are in a hurry to invest in high computing power hardware. Otherwise, they opt for cloud mining. One of the alternatives offered to miners is the purchase of mining rigs. We can buy it on the virtual market. It will help the miner to validate his blocks quickly.

Blockchain and cryptomoney

Cryptocurrency is a virtual currency. It is not represented by any physical form. Nevertheless, it exists and circulates via the network for some time. People use it to make online purchases, goods or services, via crypto wallet and in the same way as Paypal. Unlike real money, it does not involve any organization in its circulation. Clearly, on the network, the exchanges concerning it are similar to the peer-to-peer system.

When we talk about blockchain, we otherwise think of cryptocurrency. Among all of them, Bitcoin is the best known. Note that this electronic currency appeared at the same time as this famous storage and transmission system. It should also be noted that this technology can be private or public. With respect to Bitcoin, the blockchain is definitely a public network.

Let's remember on the other hand that the work of the miners consists in the validation of block. The latter, being constituted by transactions. In the mining of Btc, the users of the blockchain use their computing power to solve as many hashes as possible. The frequency is based on the second. It represents the probable number of operations performed per second by the computing power. The higher the volume of the hash, the higher the return on investment for the miners.