Bitcoin mining is the process of verifying and adding transaction records to the public ledger (known as the blockchain). Bitcoin miners are rewarded with newly created bitcoins and transaction fees.
Bitcoin mining is something of a misnomer. Mining bitcoin doesn’t involve digging or drilling.
Instead, it refers to the verification of bitcoin transactions. By verifying transactions, miners are helping to prevent the “double spend” problem.
A double spend is when someone spends the same bitcoin in two different places. This is a problem because it could cause inflation.
If there were more than one copy of a bitcoin, then people would start losing faith in the currency and it would become worthless.
Mining is how new bitcoins are created. Miners are rewarded with bitcoins for verifying and committing transactions to the blockchain.
Mining is also the mechanism used to introduce new bitcoins into the system.
When a miner verifies a block of transactions, they are rewarded with a certain number of bitcoins. The reward is halved every 210,000 blocks (approximately every 4 years).
This halving process ensures that there will only ever be 21 million bitcoins in existence.
The current block reward is 12.5 bitcoins per block.
This will eventually decrease to 6.25 bitcoins per block when the halving occurs again in May 2020.
What Is Bitcoin Mining Browser?
Bitcoin mining browser refers to the process of verifying and adding transaction records to the public ledger (known as the blockchain) through the use of browsers. Bitcoin miners are rewarded with newly created bitcoins and transaction fees for their work in helping to prevent the “double spend” problem.