The competition for the bitcoins
This is how the miners search for blocks in the network: All Miners compete with each other by using a special software to find new blocks.
Every time someone successfully creates a hash, they get 25 bitcoins, the blockchain gets an update and everyone gets it. This is the incentive for the mining, which keeps the transactions upright.
The problem is that it is very easy to create a hash from a collection. Computers are quite good in it. The Bitcoin network has to make it more difficult because otherwise everyone would have hundreds of blocks in the second hashen and all Bitcoins would be stuck in a few hours. The Bitcoin protocol is more deliberate, however, by the introduction of so-called "proof of work". The mining difficulty thus increases with time.
The Bitcoin network would not simply accept any old hash. The hash block must have a certain appearance; It must have a certain number of zeros at the beginning. There is no way to know how a hash looks before it is not produced, and once a piece of data is added, it looks totally different.
Of course, Miners are not supposed to interfere with the transactions in the block, but they have to change the data they use to create a new hash. They do this by using another piece of data, a record that is also called "nonce". This is used together with the transaction to generate a hash. If the hash does not find the desired format, the None is changed and the whole hash changes again. Usually many attempts are needed to find the right None. That is why the miners usually do the same in the same network at the same time. If the None is found, the Bitcoins will be distributed to all miners (depending on the performance). So Miner earn their bitcoins.
Every time someone successfully creates a hash, they get 25 bitcoins, the blockchain gets an update and everyone gets it. This is the incentive for the mining, which keeps the transactions upright.
The problem is that it is very easy to create a hash from a collection. Computers are quite good in it. The Bitcoin network has to make it more difficult because otherwise everyone would have hundreds of blocks in the second hashen and all Bitcoins would be stuck in a few hours. The Bitcoin protocol is more deliberate, however, by the introduction of so-called "proof of work". The mining difficulty thus increases with time.
The Bitcoin network would not simply accept any old hash. The hash block must have a certain appearance; It must have a certain number of zeros at the beginning. There is no way to know how a hash looks before it is not produced, and once a piece of data is added, it looks totally different.
Of course, Miners are not supposed to interfere with the transactions in the block, but they have to change the data they use to create a new hash. They do this by using another piece of data, a record that is also called "nonce". This is used together with the transaction to generate a hash. If the hash does not find the desired format, the None is changed and the whole hash changes again. Usually many attempts are needed to find the right None. That is why the miners usually do the same in the same network at the same time. If the None is found, the Bitcoins will be distributed to all miners (depending on the performance). So Miner earn their bitcoins.
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