What Does Mining Bitcoin Gold BTG Mean
David Schwartz's answer is entirely accurate, but all that 'bitspeak' might be a little intimidating to the average user. Let me try and put it into more plain language: The way Bitcoin works is that instead of having one central authority who secures and controls the money supply (like most governments do for their national currencies), this work is spread out all across the network. Most of the heavy lifting for Bitcoin is done by 'miners'.
Miners collect the transactions on the network (like 'Alice pays Karim 10 bitcoins' and 'Liam pays Sofia 8.3 bitcoins') into large bundles called. These blocks are strung together into one continuous, authoritative record called the, which doesn't permit any conflicting transactions.
I tried to find an answer to understand what does it mean and how painful it is for me when a Bitcoin Gold (BTG) hard by scorer. Nov 11, 2017 - Only after these 8000 blocks will Bgold's mining difficulty ramp up to normal levels, and will anyone be allowed to mine the coin. The resulting 100,000 BTG worth of block rewards from the first 8000 blocks will fund project development and more. (For more details, see the Bitcoin Gold roadmap.).
This is necessary because without it people would be able to sign the same bitcoins over to, like writing cheques for more money than you have in your account. The block chain lets you know for sure exactly which transactions count and can be trusted (so no bad cheques!). The way Bitcoin makes sure there is only one block chain is by making blocks really hard to produce.
So instead of just being able to make blocks at will, miners have to compute a of the block that meets certain criteria. Bitcoiners refer to this process as 'hashing'.
The only way to find a cryptographic hash that's 'good enough to count' is to try computing a whole bunch of them until you get lucky and find one that works. This is the 'lottery' that David Schwartz refers to, because miners who successfully create a block are.
The difficulty of the criteria for the hash is continually adjusted based on how frequently blocks are appearing, so more competition equals more work needed to find a block. A modern can try hundreds of millions of hashes per second, so to be competitive in this race to find hashes miners need specialised hardware, otherwise they will tend to spend more on electricity than they make in the 'lottery'. In addition to the hash criteria, a block needs to contain only valid, non-conflicting transactions.
So the other main task for miners is to carefully validate all the transactions that go into their blocks, otherwise they won't get any reward for their work! Because of all this work, when a Bitcoin client signs on to the network it can trust the block chain that was most difficult to produce (since this is evidently the one that was being worked on by the most miners). If there was a 'fake' blockchain competing with the real ones (say, where someone pretends that they didn't actually give Sofia those 8.4 bitcoins and they still have them), the fraudster would have to do as much work as the whole rest of the network to make their block chain look as trustworthy. So essentially, the intense work that goes into finding blocks through hashing secures the network against fraud.
There is also, of course, some nifty code that figures out how to choose between conflicting transactions; and what to do if two people find valid blocks at the same time. One last thing: why is it called mining? In the original analogy, people who performed this essential work were compared to gold miners digging the gold out of the ground so that everyone could use it. But in reality, Bitcoin 'miners' are just running computer programs on very specialised hardware that automates the process of securing the network. To sum up, this software • Collects transactions from the network • Validates them, and doesn't allow conflicting ones • Puts them into large bundles called • Computes over and over until if finds one 'good enough to count' • Then submits the block to the network, adding it to the block chain and earning a reward in return.
That's mining in a nutshell! Mining is doing the work of finding nonce so that sha256(sha256(data+nonce)). Mine GameCredits GAME Without Hardware on this page. Mining is just running a application on your computer to confirm the transactions of the crypto currency for which you get paid as fees. I will say mining is the soul of crypto currency, according to today's scenario everyone creating new coin everyday but some of them goes to the moon and some of them just vanish in a couple of weeks, why?
Because a coin is alive until there are people to mine it. Take a example of a coin which has only 100 miners and you bought 1000 such coins after a few days miners stopped mining that coin, now you cannot sell that coin to anyone even if you have a potential buyer, why? Because your transaction will not confirm until there are people mining that coin. The price of coins go up because of mining, why?
Because as many miners start mining the currency the difficulty increases, with the increase of difficulty mining coins will take more time, more miners more demand less coins. Increment in rates.
The answers in this section all present different, useful perspectives. Another useful, but non-technical perspective is: Mining is a battle between those who want to see Bitcoin succeed for the greater good, and those who don't care if it is destroyed as long as they achieve some victory, even if only to be part of the destruction (they might not get any BTCs from their destructive efforts). In other words, Bitcoin is a fascinating attempt to establish an alternate money system. Since the P2P, decentralised architecture is integral to its success it is, by design, open to any participant. The mining process assumes that some participants are evil. It pitches 'good' against 'evil' in the hope that 'good' will continue to succeed and maintain the integrity of the network.
Bitcoin Gold (BTG) We have already experienced the Bitcoin Cash and Bitcoin platforms, but are you ready for Bitcoin Gold? Bitcoin gold is a new project with the goal as that of the other Bitcoin hard fork. Created by a group and miners and developers the aim of the projects is to improve the protocol and complete a fork of the blockchain. Bitcoin Gold appears to be designed in a way to specifically challenge the Bitcoin Cash. The project is led by CEO Jack Liao who is also the CEO of LightningAsic, a Hong Kong-based Bitcoin mining firm. What is the purpose of Bitcoin Gold?
The main purpose of Bitcoin Gold is making mining decentralized again. The project wants to provide an opportunity for countless new people to participate in the mining process around the world. They also plan to have widely-available consumer hardware that will be manufactured and distributed by reputable-mainstream corporations. It wants to build a more decentralized, more resilient, democratic mining infrastructure and a more in line with the original Satoshi’s version. What does having Bitcoin Gold mean? There has been a lot of controversy over what the projects really mean to the community because there is already the Bitcoin and Bitcoin cash. Many think that Bitcoin Gold is an insignificant development and a non-issue projects.
Others believe its only purpose is the attempt to divide the Bitcoin community. However, Bitcoin is a genuine project that could be the future of Bitcoin. Most analysts are pointing the projects as a precedent for Bitcoin. Advantages of Bitcoin Gold With the aim of making a truly decentralized version of bitcoin. The Bitcoin Gold has many benefits that make the project stand out from other projects.
The developers of the platform hope to open up mining to even more people. They want to achieve this by replacing the bitcoin’s mining algorithm with a different one that allows it to be mined using a graphics card. The idea behind this is to make big miners who are seen as controversial figures. Bitcoin Gold Token The Bitcoin Gold token is also known as the BTG.
The BTG initial coin distribution is the same as that of Bitcoin Cash. The rate of the coin is 1 BTG = 1 BTC, but only for those who held BTG when block 491406 was mined. BTG can be stored on various platforms like Electrum, paper wallets, hardware wallets, Bitcoin Core, Mycelium and more. Some of these wallets offer direct access to BTG while others require additional technical steps.