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Mining is just finding a combination of values that the hash of them will have a number of zeros in it. (intentionally brute force problem) Public key crypto i
by hdhzy 9y ago
Mining is just finding a combination of values that the hash of them will have a number of zeros in it. (intentionally brute force problem)
Public key crypto is used to confirm that the coins can move from one account to another, or to be more precise from one output to another input. (there are no accounts in Bitcoin, that's just an illusion)
- jokoon 9y agoAnd how is it possible for newly mined blocks to be worth less bitcoins that earlier blocks? I'm talking about the limited quantity of bitcoins. How is that achieved?
- hdhzy 9y agoThe amount that the miner can claim is hardcoded in the client, something like "if block no < X you can create out of thin air only N coins". After some time N will be zero and the incentive for the miner will come purely from fees. Of course a miner could just use a different, bigger value but then the block would not be accepted by anyone else and be basically worthless. The rules are there because everyone is using the same client or bug to bug compatible alternative.