In today's era of surging digital currencies, Bitcoin has attracted much attention as the most well-known and market-valued cryptocurrency. In the creation process of Bitcoin, the Bitcoin mining algorithm plays a crucial role. What is the Bitcoin mining algorithm? What secrets does it hide? This article will take you deep into the subtleties of the Bitcoin mining algorithm.

The Bitcoin mining algorithm, as the core of the Bitcoin network, is responsible for verifying transactions, protecting network security, and issuing new Bitcoins. Its core principle is to solve complex cryptographic puzzles through mathematical calculations, thereby ensuring the decentralization and security of the Bitcoin network. How is this algorithm implemented? Let’s find out.

First of all, the core of the Bitcoin mining algorithm is the Proof of Work (PoW) mechanism. This mechanism requires miners to compete for the right to produce blocks by constantly trying to calculate hash values that meet certain conditions. This process requires a lot of computing power and electricity consumption, hence the name "mining." As the difficulty of Bitcoin continues to increase, mining becomes increasingly challenging and costly.

Secondly, the hash function involved in the Bitcoin mining algorithm is also a crucial part. Bitcoin uses the SHA-256 hash algorithm to perform block hash calculations, ensuring the uniqueness and non-tamperability of each block. The high security and reliability of this algorithm provide a solid foundation for the stable operation of the Bitcoin network.

In addition to the technical aspects, the Bitcoin mining algorithm also involves economic incentives. Miners are rewarded with newly issued Bitcoins and transaction fees by participating in mining, thus motivating them to contribute to the safe operation of the network. This economic model not only ensures the decentralization and security of the Bitcoin network, but also promotes the development and growth of the entire network.

Additionally, the development of Bitcoin mining algorithms continues to evolve. With the advancement and innovation of technology, new consensus mechanisms such as Proof of Stake (PoS) and Proof of Importance (PoI) continue to emerge, trying to solve the energy waste and centralization problems of the PoW algorithm. This kind of technological exploration and practice brings new possibilities to the development of the cryptocurrency field.

In general, the Bitcoin mining algorithm, as the core of the Bitcoin network, bears the important responsibility of maintaining network security and ensuring currency issuance. Its complexity and subtlety are not only reflected in mathematical calculations and cryptographic principles, but also in its deep understanding of economic models and social impacts. As the cryptocurrency field continues to develop, Bitcoin mining algorithms will continue to evolve and improve, contributing to the prosperity of the entire industry.

In the process of exploring the mysteries of the Bitcoin mining algorithm, we not only understand its technical principles and economic mechanisms

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
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Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The following parameters are required

1. Block version version

2. The hash value of the previous block: prev_hash

3. The value of the hash tree of the transaction record that needs to be written: merkle_root

4. Update time: ntime

5. Current difficulty: nbits

 The process of mining is to find x such that

SHA256(SHA256(version + prev_hash + merkle_root + ntime + nbits + x )) <
TARGET

The range of x in the above formula is 0~2^32,
TARGET can be calculated based on the current difficulty. In addition to x, you can also try changing merkle_root and ntime. Due to the characteristics of hash, finding such an x can only be done through violent search.

Once you find x, you can broadcast a new block and other clients will verify that your block is valid. If your block is accepted, since the first transaction in each block must be to send the newly generated 25 Bitcoins to a certain address, of course you will set this address to an address you own to get these 25 Bitcoin.

Every transaction record of Bitcoin from the beginning to the present is saved on the network, and the entire Bitcoin network maintains a huge transaction record file (about 12G now).
The update cycle of this file is 10 minutes on average. The newly added transaction record is called a block, and this huge file is composed of a series of blocks, called a block chain.

 Why 25 Bitcoins?

This is the rule. It starts with 50 Bitcoins, and every time half of the remaining Bitcoins are generated, this income will be halved, so that the total number of Bitcoins that can eventually be generated approaches 21 million. If you still claim to have mined 50 Bitcoins, this will not be accepted by other clients, and the block will be mined in vain.

How to ensure that the update cycle is 10 minutes on average?

The smaller the TARGET, the more difficult it is to solve x. Every time 2016 blocks are generated (about 14 days), the network will adjust the TARGET based on the average interval of new blocks generated during this period.

Does the person who calculates the fastest always solve it first?

no. You always want to keep the mining income as your own, so when everyone calculates, the address they send the mining income to is different, so the merkle_root is different, which means that everyone starts from a different initial state to solve the problem. .

 What should I do if I solve it at the same time?

block
The chain will fork, with some clients accepting A and some accepting B. Until a certain branch becomes longer, everyone will choose this longer branch. If the piece you mine is not selected, your mining proceeds will be invalid.

Since I choose a longer branch, what should I do if I use a very low difficulty to solve it?

The client finds the longest one among many branches that meets the current difficulty.

 Are these calculations wasted?

If you're going to spend money twice, you need to do this. A new block is mined, but it is hidden and not broadcast, and mining continues. Find merchant A, pay Bitcoin, and let others on the network mine the block and write the transaction record. Find Merchant B, pay Bitcoin, and write the block you mined. If you can dig out two blocks first and broadcast them, everyone will regard your longer branch as the current block.
chain, the Bitcoins received by Merchant A will not be recognized. The probability of such an attack succeeding depends on how quickly you calculate the hash. If the computing power of the entire network is high enough, such an attack will either have a very low success rate or be extremely costly.