4 ms·
And the ones who own the initial supply are the ones cranking out the solutions to the problems?
by pero 16y ago
And the ones who own the initial supply are the ones cranking out the solutions to the problems?
- kiba 16y agoYes. Those who solved a problem get to send 50 BTC + transaction fees to himself.
- joelthelion 16y agoYes. Note that solving the problems is useful to the whole network: it records transactions and secures the network.
- pero 16y agoWhat's being solved are not just abstract mathematical problems, but equations that have implications on the whole system?
- sgornick 16y agoThe "equation" is a simple cryptographic hash performed on a block of data, as described earlier in this thread: http://news.ycombinator.com/item?id=2358396 http://news.ycombinator.com/item?id=2358396 The equation itself is trivial -- it can be calculated hundreds of thousands of times a second by even a really slow CPU. An artificially set difficulty is implemented and the result is that only one of those attempts across the entire network will succeed in about ten minutes, which is the targeted time for processing a batch of transactions (a block).