Studied by 0 people
Looks like no one added any tags here yet for you.
Proof of Work (PoW)
A consensus mechanism used in Bitcoin mining that requires miners to perform a computationally intensive process to add new blocks to the blockchain and secure the network.
Transaction Collection
The first step in the PoW process where miners collect unconfirmed transactions from the Bitcoin mempool, prioritizing them based on the fees offered by users.
Block Assembly
Miners group selected transactions into a candidate block, including a reference to the previous block's hash, a timestamp, and a nonce.
Initial Hashing
Miners use the SHA-256 cryptographic hash function to create a hash of the block header, which is compared to the current network's difficulty level.
Difficulty Adjustment
The network's difficulty level, representing the number of leading zeros required in the hash, is adjusted every 2016 blocks to maintain an average block time of 10 minutes.
Nonce Modification
Miners iteratively modify the nonce value in the block header to create a different hash, requiring significant computational power.
Hashing and Verification
Miners repeatedly calculate new hashes of the block header, aiming to find a hash that meets the current network difficulty by having a specific number of leading zeros.
Valid Block Found
When a miner discovers a hash that meets the required difficulty level, they broadcast the valid block to the network.
Network Verification
Other nodes on the network receive the newly mined block and verify its validity by checking the timestamp, reference to the previous block, and validating all transactions within the block.
Consensus and Block Addition
If the majority of nodes agree that the block is valid and the proof of work is legitimate, the new block is added to the blockchain, and the miner is rewarded with new Bitcoins and transaction fees.
Process Continues
The mining process continues, with miners competing to find the next valid block, increasing the difficulty as more miners join the network to ensure the security and integrity of the Bitcoin network.
