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Difference between revisions of "Mining"
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(Created page with "The process of creating new cryptocurrency units by solving complex mathematical problems, which are then verified and added to the blockchain network; miners usually receive a reward for their work in the form of these coins they mine. == Sources: == https://fintechmagazine.com/financial-services-finserv/140-blockchain-and-crypto-words-ultimate-z-glossary Category:Glossary") |
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The process of | The process on which PoW consensus is based upon. Miners use computational power through cryptographic hash functions to secure the network. | ||
== How hash functions work == | |||
Mining is based on cryptographic '''hash functions'''. A hash function is a special kind of cryptographic process that generates a fixed amount of bits given an arbitrary input. An example of an hash function is SHA-256 (which is used to secure the [[Bitcoin]] blockchain or Keccak-256 (used in [[Ethereum|Ethereum)]]. | |||
Hash function are one-way functions, this means that it is easy to derive the output given the input, but it is ''computationally infeasible'' to do the opposite; this means that one cannot retrieve the original input given the output of the hash function. Also, for any given input there is a unique output such that, even if only 1 bit of the input is altered, the output changes completely and is completely unrelated from the previous one. | |||
== Sources: == | == Sources: == | ||
https://fintechmagazine.com/financial-services-finserv/140-blockchain-and-crypto-words-ultimate-z-glossary | https://fintechmagazine.com/financial-services-finserv/140-blockchain-and-crypto-words-ultimate-z-glossary | ||
[[Category:Glossary]] | [[Category:Glossary]] | ||