Definitions[]
Blockchain technology[]
Mining is the
| “ | [p]rocess by which a person or group solves complex computational problems to create new bitcoins and the process by which Bitcoin transactions are added to the public ledger and confirmed.[1] | ” |
| “ | the validation of a set of transactions (called a "block") made with a decentralised VCS and adding this block to the ledger of all transactions (called a "blockchain"). The name is supposed to be an analogy to people spending time and energy to extract a valuable mineral from the earth.[2] | ” |
Overview[]
"To mine and validate a new block of transactions, miners compete to solve a difficult math problem. The miner that solves the problem first validates the transactions in the block and broadcasts his or her proof-of-work to the bitcoin network. Other miners in the network check the successful miner's results. If the miner's work is found to be correct, he or she is rewarded by the system with 25 new bitcoins."[3]
References[]
- ↑ Pillsbury Winthrop Shaw Pittman LLP, Virtual Currency & Beyond: Acronyms, Abbreviations and Key Definitions, at 7 (full-text).
- ↑ Virtual Currency Schemes: A Further Analysis, at 33.
- ↑ Bitcoin: Questions, Answers, and Analysis of Legal Issues, at 2.