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Bitcoin is considered to be the most used cryptocurrency nowadays. This was announced in 2008 and launched in 2009 by Satoshi Nakamoto. The identity of this person is anonymous. Here in this article, we will come to know about the process of data mining.
Bitcoin Mining
Basically, Bitcoin transaction work in a decentralized manner and it requires maintaining the ledger of those transactions, and it is done by data mining in the form of blockchains. And this all data, when stored in the form of the ledger, is then saved in all the computers which are engaged in data mining so that in future, when there is a need of verifying the data of mining, it should be easily verified and the fraud or illicit activity can be prevented.
As this data is stored everywhere and no other miner will allow the miner to perform the illicit activity. The transactions which take place in the bitcoins is confirmed and verified by the persons known as miners, and the process named data mining.
Processing of mining work
Miner is supposed to solve the math problem by the high computational skills and then guess the number of mining. After guessing if the miner is right, and then he does the work with transactions in one block until the space of one megabyte is filled. After the filling of one block, the miner starts up with the other new block by saving the transaction.
- After completing one block, the miner is rewarded with some bitcoins, which is known as Block Reward. But it is not easy to work as a miner because its difficulty is very great as 13 million. Initially, when bitcoins were not known its difficulty level was just one unit. This difficulty is set after the 2016 blocks. Later on, with time, as the miners increased, it led to the increase in the difficulty of the level.
- Now the reward that the miners get after the process of mining gets halved after the 21000 blocks. In 2009 it was 50 BTC; in 2020, it was 6.25 BTC; in 2013, it was 12.5 BTC, and in 2018 it was 25 BTC. The reward is being halved every four years.
Mining pool
let us assume there are three computers engaged in the one transaction for the one block in the blockchain, and now, with time, as the block is completed and the reward is given, it gets equally distributed among the three users.
Various softwares, including in the mining
Initially, when the mining process was just started, the miners were to use their computers as it is. But when miners increased with time, miners started to use GPU( Graphical Processing Unit). This processing unit was mainly used to play games, but it started to get used in the mining process to know more details visit Bitcoins-Era.io. Bitcoin is the easiest way to earn money in no time.
Later on, there was the GPU; this processing unit is the same as that of GPU, ie. It works in the same manner. But its working power is 3 to 100 times more than that of GPU. In these recent times, a special tool named ASIC (Application Specific Integrated Circuit) is used. This is made specially to work for the mining process. This is used in heavy computational results.
Mining In India
In India mining process can be done, but it is not preferred because of the various reasons
- High electricity cost
- Outdated equipment
- New equipment is not received at the appropriate time
In China, 65% of the mining process takes place because their electricity prices are almost half that in India. All the advanced mining tools are made in china, and when these are received in India, these tools get outdated; and in the meantime, china makes the new tool for mining.
Conclusion
So the mining process is very interesting but, yes, somewhat difficult process. You mainly need good computers for the mining which would help you to solve the mining problems. You need the latest technology tools for the mining process. This latest technology costs a lot. If you are willing to do mining, then you need to invest 5000$-10000$. This will lead to your base for data mining.
