What exactly is bitcoin mining and how can Big Data help you??

Traditional government-controlled monetary systems simply print more money when they need it, but with bitcoins this does not work like this. Money is not printed but is discovered by techniques of Bitcoin mining.

How is this bitcoin mining done?

People send bitcoins to each other over the bitcoin network. But unless someone keeps a record of all those transactions, no one will be able to keep track of who has paid what. The bitcoin network takes care of this by compiling a list of all transactions carried out during a certain period of time.. This list is called a block. The work of Bitcoin mining is to confirm those transactions and write them to the ledger.

This ledger is a long list of blocks, known as “block chain”.. Se puede utilizar para explorar cualquier transactionThe "transaction" refers to the process by which an exchange of goods takes place, services or money between two or more parties. This concept is fundamental in the economic and legal field, since it involves mutual agreement and consideration of specific terms. Transactions can be formal, as contracts, or informal, and are essential for the functioning of markets and businesses.... realizada entre cualquier dirección de bitcoin, anywhere on the net. Every time a new transaction block is created, blockchain is added, creating an ever-growing list of all transactions that have occurred on the bitcoin network. All those who participate are given a constantly updated copy of the block, so they know what's going on.

But a ledger has to be reliable and all of this is done digitally.. How can we be sure that the blockchain remains intact and is never modified? This is where bitcoin mining comes in.

When creating a transaction block, the “miners” they subjected him to a process. They take the information from the block and apply a mathematical formula to it, turning it into something else.. That something else is a much shorter and seemingly random sequence of letters and numbers known as hashes... This hash is stored together with the block, at the end of the blockchain at that time.

Hashes have some interesting properties. It is easy to produce a hash of a collection of data as a bitcoin block, but it is practically impossible to calculate what the data was just by looking at the hash.. And although it is very easy to hash a large amount of data, each hash is unique. If only one character changes in a bitcoin block, your hash will change completely.

Bitcoin mining doesn't just use transactions in a block to generate a hash. Some other data is also used. One of this data is the hash of the last block stored in the blockchain.

Since the hash of each block is produced using the hash of the previous block, becomes a digital version of a stamp. Confirm that this lock, and all subsequent blocks, it's legit, because if I manipulated it, everyone would know.

If it is a question of falsifying a transaction by changing a block that had already been stored in the blockchain, the hash of that block would change. If someone verifies the authenticity of the block by executing the hash function on it, you will find that the hash is different from the one already stored together with that block in the blockchain. The block would be immediately seen as fake.

Because the hash of each block is used to help produce the hash of the next block in the chain, manipulating a block would also make the hash of the next block wrong. That would continue to the end of the chain.

Compete for coins

This is how bitcoin mining seals a block. Everyone competes with each other to do this, using software written specifically for mining blocks. Every time someone successfully creates a hash, get a reward of 25 bitcoins, the blockchain is updated and everyone on the network listens to it.. That is the incentive to keep mining and keep trading..

The problem is that it is very easy to produce a hash of a data collection. Computers are really good at this. The bitcoin network has to make it harder, on the contrary, everyone would have hundreds of transaction blocks per second and all bitcoins would be mined in minutes. The bitcoin protocol deliberately makes it more difficult, introducing something called “work test”..

The bitcoin protocol won't just accept any old hash. Requires the hash of a block to have a certain shape; must have a certain number of leading zeros. There is no way to know what a hash will be before producing it, and as soon as a new data is included, the hash will be totally different..

Miners don't mess with transaction data in a block, but they must change the data they are using to create a different hash. They do it using a random piece of data called “nonce”. This is used with the transaction data to create a hash. If the hash does not conform to the required format, the nonce is changed and everything is hashed again. It may take many tries to find a working nonce, and all miners on the network try to do it by mining bitcoins at the same time. This is how miners earn their bitcoins.

Why Big Data will be necessary

The analyticsAnalytics refers to the process of collecting, Measure and analyze data to gain valuable insights that facilitate decision-making. In various fields, like business, Health and sport, Analytics Can Identify Patterns and Trends, Optimize processes and improve results. The use of advanced tools and statistical techniques is essential to transform data into applicable and strategic knowledge.... of Big data will be an important way to track activity as more devices process services.

Blockchain transactions and smart analysis of contract data will be critical in enabling organizations to make informed decisions that affect profitability and survival...

Data within the bitcoin blockchain will be worth trillions of euros as bitcoin takes over more aspects of banking., the remittances, micropayments and other global financial services.

Blockchain or ledger data could grow by as much as a 20% with the Big Data market to 2030 and could produce up to 100.000 trillion euros in annual revenue for those who mine bitcoins. Earning potential exceeds what Visa generates, MasterCard and PayPal combined.