What is Bitcoin Mining?

How do we know that Emmanuel has sent 1 bitcoin to Jessica?

How do we stop Emmanuel from also sending that bitcoin to Bode?

The answer is  Bitcoin Mining.

How to Mine Bitcoin in Nigeria may be the next big thing in Finance in Nigeria, but it can be difficult for most people to fathom how it works. There is a whole lot of Numbers Involved.




What is Bitcoin Mining?

Mining new bitcoin is one of the ways of obtaining bitcoin, others include buying on an exchange and accepting them for goods and services.

Bitcoin mining serves to both add transactions to the block chain and to release new Bitcoin. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The first participant who solves the puzzle gets to place the next block on the block chain and claim the rewards.

In a nutshell, it is  the verification of bitcoin transactions.

The rewards induce mining and include both the transaction fees (paid to the miner in the form of Bitcoin) as well as the newly released Bitcoin.