Midterm 01: Process - Miner Creates Block Hash Varying Nonce (PoW)

Fall 24

What is nonce?

one of the values used to generate blockhash/blockID. The nonce is regenerated until it’s below a target value

What algorithm is used to generate a block hash in Bitcoin mining?

SHA-256

What is Merkle Root?

the final hash at the top of the Merkle Tree that represents all transactions in a block. It’s included in the block header.

What happens if a miner’s block hash is less than the target value?

The block is considered valid, added to the blockchain, and the miner receives a reward (current mining payout: 3.125 Bitcoin).

What happens if the block hash is not less than the target value?

The miner increments the nonce and tries again until a valid hash is found.

What is the purpose of the previous block hash in a new block?

The previous block hash links the new block to the blockchain, ensuring continuity and security.

What is the reward a miner receives for successfully mining a block called?

Coinbase transaction, which currently provides 3.125 Bitcoin to the miner.