Role of Bitcoin Miners

To understand the role of bitcoin miners, let us first understand Bitcoin Mining.

1. Bitcoin Mining

Bitcoin mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions. This ledger of past transactions is called the blockchain as it is a chain of blocks. Bitcoin mining is used to secure and verify transactions to the rest of the network.

2. Role of Bitcoin Miners

Within the bitcoin networks, there are a group of people known as Miners. In miners, there was a process and confirm transactions. Anybody can apply for a minor, and you could run the client yourself. However, these minors use very powerful computers that are specifically designed to mine bitcoin transaction. They do this by actually solving math problems and resolving cryptographic issues because every transaction needs to be cryptographically encoded and secured. These mathematical problems ensure that nobody is tampering with that data.

Additionally, for this task, the minors are paid in bitcoins, which is the key component in bitcoin. In Bitcoin, you cannot create money as like you create regular fiat currencies such as Dollar, Euro, and Yuan. The bitcoin is created by rewarding these minors for their work in solving the mathematical and cryptographical problems.

3. How is the Bitcoin Blockchain built?

The role of a minor is to build the blockchain of records that forms the bitcoin ledger. These ledgers are called blocks, and each block contains all the different transactions that have taken place. A new block is added in every 10 minutes as a new Bitcoin Transaction takes place. So, as the minors process these different transactions, they build the block, and when a block is confirmed, it gets added to the blockchain. The bitcoin blockchain provides a permanent record of all bitcoin transactions to the beginning.

Role of Bitcoin Miners