Bitcoin halving, also known as Bitcoin halvening, is one of the most anticipated events in the crypto world. To help you further understand what it is, let’s have a quick look at the process of acquiring today’s dominant digital coin. Bitcoin mining is the process where miners acquire BTC through digging into Bitcoin’s digital cave with specialized mining equipment as their virtual pickaxe.
Bitcoin miners have to solve the network’s highly complex mathematical equations to complete the “blocks” that are added to Bitcoin’s blockchain. A block refers to a file that stores or keeps 1 megabyte (MB) worth of Bitcoin transactions. As more and more transactions are verified, Bitcoin’s network also increases in size.
After solving these puzzles or successfully verifying transactions, which usually takes 10 minutes, miners will receive Bitcoin as their reward. Now, in the process called Bitcoin halving, the rewards earned by miners fall by half after a set of 210,000 blocks is mined or roughly every four years.
No comments:
Post a Comment