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Learn about how Bitcoin mining works

John Williams

Nov 19, 2020 — 1 min read

Bitcoin mining is how the Bitcoin blockchain keeps running, but you might want to know more about how bitcoin mining works. Basically, Bitcoin mining is the process that adds new blocks to the Bitcoin blockchain, and approves transactions. This is accomplished by solving difficult math puzzles with a special kind of computer.

In the early days, pretty much any computer was able to mine Bitcoin, and to some degree this is still true. With the increase in popularity of Bitcoin, and the built-in rise in the difficulty of the puzzles, specially built computers are now needed to profitably mine Bitcoin.

When a person sends Bitcoin from one wallet address to another with their private key, this means that the blockchain needs to be updated. Mining computers compete to create updates in the blockchain, which makes the transaction happen, and also pays out the successful miner with Bitcoin.

Every mining computer, or node, has a complete copy of the Bitcoin blockchain that has to be updated as other nodes approve transactions. This is the process of multiple node verification, which is one of the reasons why Bitcoin is relatively slow compared to other tokens. Despite its limitations, Bitcoin remains the most popular crypto as measured by its market cap.

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