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Competing for Bitcoin, the ten-minute contest

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Here’s how the mining competition works. We’ll begin at the point at which a miner has just won the right to add a block to the blockchain. When this happens, the winner sends the winning block out across the network, and it gets picked up by the nodes and added to their versions of the blockchain. That’s when the next competition begins.

Each round of this game is designed to last around ten minutes; remember, one purpose of mining is to dribble new Bitcoin into the blockchain at a set rate; currently 12.5 Bitcoin every ten minutes. On average, a miner will succeed at the game every ten minutes, will be rewarded cryptocurrency, and the game restarts.

A miner receiving the new block first compares the block to the miner’s mempool and removes transactions from the mempool that have been added to the latest block, leaving only transactions that have not yet been added to the blockchain.

The miner then gathers together transactions from the mempool into a new block, which is known as a candidate block. This block can be added to the blockchain, if the miner can win the competition.

Cryptocurrency Mining For Dummies

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