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In other words, it is a gamble. .

The difficulty level of the most recent block at the time of writing is about 7,184,404,942,701. That is, the chance of a pc producing a hash beneath the target is 1 in 7,184,404,942,701 less than 1 in seven trillion. That level is corrected every 2016 blocks, or about every two weeks, with the aim of keeping rates of mining constant.

The opposite is also correct. If computational power is taken from the network, the problem adjusts downward to make mining simpler. .

"Say I tell three friends I'm thinking of a number between 1 and 100, and that I write that number on a piece of paper and seal it in an envelope. My friends don't need to guess the specific number, they just must be the first person to figure any number that's less than or equal to the number I am thinking of.

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"Let us say I am thinking of the number 19. If Friend A guesses 21, they shed because 21>19. If Friend B supposes 16 and Friend C guesses 12, then they've both technically came at workable answers, since 16<19 and 12<19. There's no'extra credit' for Friend B, even though B's answer was closer to the goal answer of 19. .

"Now imagine that I present the'imagine what number I'm thinking of' question, however I am not asking just 3 friends, and I'm not thinking of a number between 1 and 100. Rather, I am asking millions of prospective miners and I'm thinking of a 64-digit hexadecimal number. Now you see that it is going to be quite hard to guess the right answer." .

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If 1 in seven trillion doesn't sound difficult enough as is, here is the grab to the catch. Not only do bitcoin miners have to come up with the ideal hash, they also have to be the first to do it.

Because bitcoin mining is essentially guesswork, arriving at the right answer before another miner has everything to do with how fast your computer can create hashes. Only a decade ago, bitcoin miners can be carried out competitively on normal desktops. As time passes, however, Website miners recognized that graphics cards commonly used for video games were more capable of mining than desktops and graphics processing units (GPU) came to dominate the match.

These can run from $500 into the tens of thousands. .

Today, bitcoin mining is so competitive that it can only be done profitably with the most up-to-date ASICs. When using desktop computers, GPUs, or elderly versions of ASICs, the expense of energy consumption actually surpasses the revenue generated. Even with the newest unit available, one computer is seldom enough to compete with exactly what miners call"mining pools" .

A mining pool is a group of miners who combine their computing ability and divide the mined bitcoin between participants. A disproportionately large number of cubes are mined by pools rather than by individual miners. In July 2017, mining pools and companies represented approximately 80% to 90 percent of bitcoin computing power. .

Between 1 in 7 trillion chances, scaling difficulty levels, and the huge network of users verifying transactions, one block of transactions is confirmed roughly every 10 minutes. However, its important to remember that 10 minutes is a target, more information not a rule.

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The bitcoin network can process about seven transactions per second, with transactions being logged in the blockchain every 10 minutes. Since the network of bitcoin users continues to grow, but the number of transactions made in 10 minutes will eventually exceed the number of transactions that can be processed in 10 minutes.

This dilemma at the heart of the bitcoin protocol is known as scaling. Even though bitcoin miners generally agree that something must be done in order to deal with scaling, there is less consensus regarding how can it. At the time of writing, there are two major solutions to the scaling problem, either (1) to decrease the amount of data needed to confirm each block or (2) to increase the number of transactions that each block can save.

Solution 2 will deal with scaling by allowing for more information to be processed every 10 minutes. .

In July 2017, bitcoin miners and mining companies representing roughly 80% to 90 percent of the networks computing power required to incorporate a program that would decrease the amount of data needed to confirm each block. In other words, they went with Solution 1.

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The app that miners voted to add to the bitcoin protocol is called a segregated witness, or SegWit. This expression is an amalgamation of Segregated, meaning to separate, and Witness, which refers to signatures on a bitcoin transaction. Segregated Witness, then, means to separate transaction signatures from a block and attach them as an extended block.