Concept
Miners Hashes
Building the Blockchain / Building the Blockchain
"When a transaction is broadcast, mining computers summarize its information into a fixed-length encrypted string called a hash, using the SHA-256 algorithm in Bitcoin. Miners combine transaction data and earlier hashes into a hierarchy that packages many transactions into a block, while repeatedly changing a randomly generated number called a nonce to search for a winning block hash. The winning miner seals the block, links it to the previous block, and receives a reward, while the computational difficulty makes altering the record expensive and detectable."
Related Ideas
- How do hashes package transactions into blocks?chapter 5 · Building the Blockchain
- How does proof of work seal a new block?chapter 5 · Building the Blockchain
- What work do bitcoin miners perform?chapter 5 · Building the Blockchain
- Why does each block link to the previous block?chapter 5 · Building the Blockchain
- How do other miners confirm a winning block?chapter 5 · Building the Blockchain
- How does bitcoin keep block production on schedule?chapter 5 · Building the Blockchain
- Bitcoin IncentivizeBuilding the Blockchain · Building the Blockchain
- How do mining rewards and transaction fees incentivize miners?chapter 5 · Building the Blockchain