Why can malicious miners not award themselves with any number of bitcoins?

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First, from a cryptography point of view, transactions have to be signed, and the other nodes in the network will be able to detect and reject transactions for which the signature was forged. Second, from an incentive point of view the miner will have invested some time in solving a block that will, as a result of the previous point, not earn him anything. So we can expect he won't try in the first place.

Another way to 'award themselves with any number of bitcoins' would be to create, rather than steal, the bitcoins. Indeed, mining is also about creating some bitcoins (currently ca. 25). But if a miner was to create more than 25, the block would again, not be acknowledged by the other nodes in the network.

I think the point is that a race is not won by "adding the next block" but rather by adding a block that will be considered by the other nodes to be...

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How Bitcoin Mining Works

Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government.

With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

Bitcoin is Secure

Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.

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Bitcoin Mining Hardware Comparison

Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are:

AntMiner S7

4.73 Th/s 0.25 W/Gh 8.8 pounds Yes $479.95 0.1645

AntMiner S9

13.5...
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A quick and dirty mining rig

Introduction

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used...

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Hi guys, we are going to have a look at

bitcoin mining

once more and look at a number of things that we have previously left out of the picture in our post articles about

bitcoin mining

.

Whether you are new in the Bitcoin mining field or you have been around for some time, I hope this is able to teach you something about the core principles of Mining!

If you want to learn what Bitcoin mining is, you should please go here: What Is Bitcoin Mining? Beginners Guide To The Process
That's an article from our Bitcoin in one week program which teaches you the very basics of Bitcoins. You can learn from there if you are a newbie on Bitcoin by going here

Bitcoin Mining Difficulty


The Computationally-Difficult Problem & why Bitcoin Difficulty Rises with more Miners

Bitcoin mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the...

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I’m very worried about the state of miner centralisation in Bitcoin.

I always felt the centralising effects of ASIC manufacturing would resolve themselves once the first mover advantage had been exhausted and the industry had the opportunity to mature.

I had always assumed initial centralisation would be harmless since miners have no incentive to harm the network. This does not consider the risk of a single entity with sufficient power and either poor, malicious or coerced decision making. I now believe that such centralisation poses a huge risk to the security of Bitcoin and preemptive action needs to be taken to protect the network from malicious actions by any party able to exert influence over a substantial portion of SHA256 hardware.

Inspired by UASF, I believe we should implement a Malicious miner Reactive Proof of Work Additions (MR POWA).

This would be a hard fork activated in response to a malicious attempt by a hashpower majority to introduce a...

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Introduction

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into...

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What is Bitcoin mining? Bitcoin mining is how Bitcoin transactions are validated and confirmed by the Bitcoin network. Bitcoin miners create a new block by solving a proof of work problem that is chained through cryptographic proof to the previous block.

Each block builds upon the previous one creating a blockchain. Every transaction in the blockchain can be proven. In this way, the Bitcoin network can come to distributed consensus as to how many Bitcoins (100,000,000 satoshis) are allocated to each public key address.

What is a Bitcoin miner? A Bitcoin miner is a computer specifically designed to solve problems according to the proof of work algorithm. Currently, highly specialized chips called ASICs, Application Specific Integrated Circuits, are used as Bitcoin miners. There are many places where you can buy a Bitcoin miner.

What is Bitcoin? Bitcoin is an internet protocol that enables the transfer of value over a communications channel like the Internet or...

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Bitcoin Unlimited, one of the Bitcoin Core software forks introduced in late 2015, garnered much attention in recent months. The project gained hash power support from several new Bitcoin mining pools, including ViaBTC, GBMiners and BTC.TOP, while node adoption appears to be on the rise as well.

The central idea behind Bitcoin Unlimited — specified in “Bitcoin Unlimited Improvement Proposal 001” (BUIP001) — is to hand control of Bitcoin’s block size limit to users and miners. Or perhaps more accurately: to make this control more explicit and easier to handle.

But as explained in “How Bitcoin Unlimited Users May End Up on Different Blockchains,” BUIP001 does not include a technical consensus mechanism as reliable as in Bitcoin’s current consensus rules.

Instead, Bitcoin Unlimited relies on a philosophy often referred to as “Emergent Consensus.”

(Note: If you are not sure how Bitcoin Unlimited works, or what the technical weaknesses of BUIP001 are,...

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Before we start, if you’re new to Bitcoin mining and don’t know what it is watch this short and simple explanation:

“Is Bitcoin Mining Profitable in 2017?“

The short answer would be “It depends on how much you’re willing to spend”. Each person asking himself this will get a slightly different answer since Bitcoin Mining profitability depends on many different factors. In order to find out Bitcoin mining profitability for different factors “mining profitability calculators” were invented.

These calculators take into account the different parameters such as electricity cost, the cost of your hardware and other variables and give you an estimate of your projected profit. Before I give you a short example of how this is calculated let’s make sure you are familiar with the different variables:

Hash Rate – A Hash is the mathematical problem the miner’s computer needs to solve. The Hash Rate is the rate at which these problems are being solved. The more...

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