Bitcoin mining is performed by high-powered computers that solve complex computational math problems; these problems are so complex that they cannot be solved by hand and are complicated enough to tax even compelling computers.
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Transaction: An transaction is a transfer of Bitcoin value and is collected in Blocks
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SHA256: a function that can generate an almost-unique 256-bit (32-byte) signature(Hexa-Decimal) for a text.
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Block: Blocks are files where data about the Bitcoin network are permanently recorded
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Nonce: Miners have to guess this number which will reward them BTC. A nonce is an abbreviation for "number only used once," which is a number added to a hashed—or encrypted—block in a blockchain that, when rehashed, meets the difficulty level restrictions.
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Difficulty Level: Number of prefix Contagious Zeroes
BTC will be rewarded if Nonce gives us a string with Zeroes' prefix the difficulty number of times. Sounds confusing? So, Let's take an example :
- Let's assume we have a difficulty level = 20
- Now, Let's again assume that we have the previous hash as: 'a5x208fecf9a66be9a2bc7...'
- Now we create text as : text = str(block_number) + transactions + previous_hash + str(nonce)
- Now, we pass text to SHA256 Function to generate hash
- Finally, that hash prefix must be equal to the number of zeroes as difficulty level.
- And Boom!! You have mined successfully.
- Run Command
BitCoin_Mining.py. - Now Enter Required Values.
- You have Mined succesfully!!.
INPUT : Transactions = '''Neeraj->Zara->50,Nandu->Allu->5''', difficulty=2, Previous_hash = a7sdxa036944e29568d0cff17edbe038f81208fecf9a66be9a2b8321c6ec7. OUTPUT : Successfully mined bitcoins with nonce value:336 end mining. Mining took: 12.207852363586426 seconds 006f74cef9d071afa15c58b38198be14f9b4aabb4cd6f7a44afffd9f6968efcd.
The script has no drawbacks, but due to the increase in miners, the difficulty level increases, and hence we'd require the best hardware as the fastest wins.