Posted: 01.07.2021 | 10:02
What is Bitcoin Mining?
THE PROCESS THAT STARTS WITH A PROCESSOR AND ELECTRICAL SOURCE
It can be argued that Bitcoin is the largest record system for making a transaction from one person to another. Whenever a transaction is made on the Bitcoin network, it means that Bitcoin is transferred from one person to another, the records of this transfer are made correctly, and the ledgers of all accounts are updated simultaneously.
In Bitcoin, this process is not done by people or companies, it is done through thousands of computers around the world. These computers connected to the Internet are called "miners". These miners are literally the computing computers themselves. Mining activity requires complex calculations based on the processing power of computers. Powerful computers and large electricity consumption are required for these calculations. Therefore, the device and electricity cost of obtaining Bitcoin is high. This is how Bitcoin is obtained by working with a reward incentive mechanism.
The company, which has the world's largest data transfer system, has to invest billions of dollars in its software and databases to provide this infrastructure and reflect these costs to its customers in order to make a profit. With Bitcoin mining, all the transactions of this global system are made through thousands of computers and distributed at costs. In short, this is a movement to democratize financial infrastructure.