Can Someone Please Explain BitCoin Mining?

S

Stone Cold Steve Autism

Veteran
I do not want to get involved in the mining of Bitcoins, I understand the the hardware involved and how to get started...But I want to know how it works exactly..

I've read https://en.bitcoin.it/wiki/Getwork

But it doesn't make sense to me, can anyone explain why algorithms are solved in order to get the currency? And for that matter, do people write these algorithms?

Shit is complicated..
 
I looked up "hashing work" and found this:

HowStuffWorks "Hashing Algorithm"

Does that mean that bitcoin mining is just the decryption of random hashes or is there a point to the distributed computational work? Where do the hashes originate?

P.S. Wtf is a block, I read the wiki entry on it and it still doesn't make sense :(
 
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as far as I know, which is not saying much.

miners are helping transactions between bitcoins and real moniez, algorithms are there for encryption of the transfer. as bitcoin has no central server where all "monies" are located. So the transactions can't use computing power from the servers hence it uses the computing power of the miners. In exchange miners get a small percentage of the transactions their computers compute or some such shit.

Like I said I am not expert :D
 
ur trying to add one more fag to the end of an anal train, and each successive fag has a dick a little bit bigger than the guy before him. thus, lengthening the train gets harder and harder, as assholes can only stretch so much. the bigger the dick of the next fag, the bigger the reward for adding him to the train.

basically, bitcoin is just one giant faggot rape train.
 
Stone Cold Steve Autism said:
I do not want to get involved in the mining of Bitcoins, I understand the the hardware involved and how to get started...But I want to know how it works exactly..

I've read https://en.bitcoin.it/wiki/Getwork

But it doesn't make sense to me, can anyone explain why algorithms are solved in order to get the currency? And for that matter, do people write these algorithms?

Shit is complicated..
Click to expand...

what is that bitcoin anyway? paypal for ultra nerds?
 
Denver said:
as far as I know, which is not saying much.

miners are helping transactions between bitcoins and real moniez, algorithms are there for encryption of the transfer. as bitcoin has no central server where all "monies" are located. So the transactions can't use computing power from the servers hence it uses the computing power of the miners. In exchange miners get a small percentage of the transactions their computers compute or some such shit.

Like I said I am not expert :D
Click to expand...

Yeah, but I thought bit coins are generated through mining like how money is printed..Is there a set number of bit coins in existence with unique serial numbers or what?
 
333 said:
what is that bitcoin anyway? paypal for ultra nerds?
Click to expand...

It's a currency. It has a real dollar equivalent.

People "invest" in Bitcoins against the US dollar, but that's stupid. It's best used as an anonymous way of paying for illegal stuff. It's best use is to use dollars, turn them into Bitcoins, then buy stuff with the bitcoins. It cant be tracked back to you in any legally reprehensible way.
 
I don't think bitcoins are generated through mining, I am in the belief there are set number of bitcoins in excistence and the number can't be increased.
 
as I remember it it's not that there are a finite number of bit coins, it's that as they algorithms become more complex the amount of compute power required to hash them is getting less and less cost-effective
 
Denver said:
I don't think bitcoins are generated through mining, I am in the belief there are set number of bitcoins in excistence and the number can't be increased.
Click to expand...

I just found this:
Besides being important for maintaining the transaction database, mining is also the mechanism by which bitcoins get created and distributed among the people in the bitcoin economy. The network rules are such that over the next hundred years, give or take a few decades, a total of 21 million bitcoins will be created. See Controlled Currency Supply. Rather than dropping money out of a helicopter, the bitcoins are awarded to those who contribute to the network by creating blocks in the block chain.
Click to expand...

I think it sort of makes sense to me now, but I still don't understand where the original hash blocks came from if the current ones are rearrangements of past transactions..

Were the original ones just random hash keys the creators threw in to get it started?

What if this whole thing is some plot to decrypt hash values for the govt. to steal Chinese state secrets. :tinfoil:
 
Nah, this thread is more focused. The first was just pages of wild speculation and trolling.
 
the only thing i ascertained from perusing the wiki entries on the subject is it seems to be some grand scheme to decrypt some block of information that someone wants decrypted

something that would take centuries to decrypt without massive distributed computing techniques

and what's more popular than obtaining illicit substances?
 
It's a new currency, but the servers were hacked, so the acceptance has leveled off.

It's supposed to take out the Federal Reserve (Jews) from the equation and make a form of currency without interest (which dooms all money systems).

Watch the movie Money As Debt III.
 
uhh what servers? there are no servers


transactions are distributed throughout the network and verified. they are "confirmed" when someone solves a block and that someone has seen the transaction. Solving a block is finding a sha 256 hash with a certain number of 0s at the front. the network is more complicated than that but that's the basic idea.
 
DMAUL said:
uhh what servers? there are no servers


transactions are distributed throughout the network and verified. they are "confirmed" when someone solves a block and that someone has seen the transaction. Solving a block is finding a sha 256 hash with a certain number of 0s at the front. the network is more complicated than that but that's the basic idea.
Click to expand...

shut up, the servers were hacked. NGFM said so.
 
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