[email protected] +91-120-6025102

Avail Best discounts

Please fill in the form below and we will contact you within 24 hours.

Why is Bitcoin Mining Necessary?

The basic idea of bitcoin mining is to secure a transaction in the Bitcoin network. It aims to control fraud and double spending i.e. using the same currency more than once. The word mining, in a sense, is inaccurate. Here it refers to investigating deep, recording transactions and validating them as genuine and not fake.

If you are a bitcoin miner, you will be using your computer to connect to the Bitcoin network. You will be contributing to the bitcoin ledger by adding all the new transactions to the already existing ones. You will be listening (recording) and collecting the transaction requests that happen in different locations. This is necessary because bitcoins are not stored in files and cannot be sent as attachments in email.

The miner works like an auditor or a bank teller. You inspect the transactions, verify the digital signatures, check the customer IDs and look for proof that the customer has funds to pay the transaction (like a teller does in your bank account) and then approve the transaction.

In short, bitcoin mining is necessary to authenticate that the customer request is genuine and they are the owners of the inputs and secondly to reconfirm that the customer has not used the same input earlier.

Was this answer helpful? #0 #0

Submit Query

Please fill in the form below and we will contact you within 24 hours.