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- What exactly is Mining? 8 answers
I am trying to understand the Blockchain algorithm used in Bitcoin.
I do not get the part how blocks are created.
Let’s say transactions occur at some time. Then, if some nodes get these transactions, these verify the transactions are valid and then send it to other nodes.
With this verify-send algorithm, almost every node verifies these newly occurred transactions in few seconds.
Now, it is a time for a miner to do his job, which I do not understand.
He needs to find a nonce which makes a lower value than hash values given in transactions.
Question 1 How many transactions should a miner should verify in a single block? For example, if a miner A finds a nonce which gives a lower value than hash values given in 50 transactions, and if a miner B finds a nonce which gives a lower value than hash values given in 70 transacations, would a reward be given only to the miner B? So should a miner appropriately choose how many transacations he will work for?
How is a block created? In some webpages, it is written that if a miner finds an appropriate nonce, a block is created and a miner is rewarded. What exactly is a block? Is it correct that a block is exactly a text file of “transaction lists+ appropriate nonce value corresponding to those transactions”?
When is a miner rewarded? Is he rewarded at the time he created a block or at the time after his block is chosen to be a part of the greatest cumulative difficulty chain?