Proofs -




You’re probably familiar with gold miners. Well, bitcoin has miners as well. These miners ‘mine’ bitcoin. How? Using ‘Mining Rigs’ to solve complex mathematical algorithms. If you have seen miners and their rigs, with usually several high end graphics cards on one motherboard, you are seeing proof of work going on. Otherwise known as “mining”, which will be discussed more in depth later on. Proof of work is the process of looking for a value that, when hashed with the correct algorithm, in this case SHA-256, that the hash begins with a number of zero bits.

For the timestamp network to work and verify transactions, Bitcoin has included a ‘nonce’ as well. A nonce a value that when included in the block, the hash of the block contains a certain number zeros somewhere in the hash.

When the block’s proof of work are correctly satisfied, they are then added to the chain. A blockchain is created as more and more blocks are chained together. The longer this blockchain is, more work is required for a malicious entity to reverse a transaction, as it must redo the work of all the blocks.