The speed of processing power in Bitcoin mining is referred to as the hash rate and the processing power is referred to as the hash power of the hardware. The Bitcoin network is self-evolving, to ensure that the time taken for a miner to win a block is steady at approximately 10 minutes. The faster the processing power, the more attempts are made by the hardware to attempt to complete the verification, and therefore earning the miner the Bitcoins that are highly sought after along with transaction fees. Miners compete with everyone on the peer-to-peer network to earn Bitcoins.
So, what’s involved in the actual mining process?Ĭomputers are used to include new transactions onto the Bitcoin exchange and while computers will find it relatively easy to complete the verification process, the process becomes more difficult as computer capability becomes more sophisticated with faster processing speeds.Īttempting to get Bitcoin users from around the world to agree on a single version of the transaction is the challenge and it comes down to what is referred to as “proof of work.”īitcoin protocol requires those looking to include additional blocks of transactions on the Bitcoin blockchain to provide proof that the user expanded a scarce resource, in the case of mining being the processing power of the computers used for the verification process. Miners will then receive transaction fees in the form of newly created Bitcoins.