In order to create new blocks, miners need to
have all the information about transactions. They compete with each other,
as the miner who first created the unit receives payment for this
service. The question is what prevents Miner from deleting previous
transactions in the blockchain. Although he will not be able to steal
coins in this way, he will be able to complete the same transaction several
times. For example, to pay for the goods, and then delete the transaction
information.
To avoid this, all miners in the network must
have the same copy of the blockchain.
When a miner adds a new block, he must provide
cryptographic proof of the transaction. To get proof, the miner spends the
block through several rounds of a hash function — a calculation that takes a
piece of data of arbitrary size and translates it into a meaningless
alphanumeric string with a fixed length, which is called a hash. To make
the process more reliable, the blockchain algorithm requires that the resulting
hash begin with a certain number of zeros. It is impossible to predict in
advance which hash will produce a given data set, so miners run the
calculations over and over again, inserting a random number into the data set each
time. When this number changes, a new hash occurs. As a result,
miners get the right number of zeros.
The miner, which finds the correct hash, sends
the block to other miners. They check it and add it to the full blockchain
version contained on their computers.
This can be compared to closing the
door. Suppose a person has a lock, and a set of keys, one of which can
close it. He must try all the keys before finding the right one. And
then leave it in the lock so that others can verify that the key fits.
Miners spend their money on network support –
they buy equipment and pay for electricity. To change the block in the
blockchain and conduct the same transaction twice, they will have to spend
twice as much their money, so it becomes unprofitable to cheat.
In addition, with each new unit, the cost of
changing previous ones increases. New blocks store the hash of the block
in front of them. Any changes to the old blocks will result in invalid
hashes for all subsequent blocks. Therefore, it is not possible to insert
dummy modifications in the previous block without repeating all the work that
was done after this block. If we draw an analogy with locks, it turns out
that the lock at the end of the chain is connected with all the previous
ones. If you change the lock in the middle of the chain, you will have to
look for new keys for each lock after it.
It turns out that miners provide costly
evidence, and then receive money for their work. Thus, Satoshi created the
first viable peer-to-peer digital currency. But he also solved a more
general problem that had worried scientists for decades. Bitcoin, which
for 8 years has never been disconnected from the network for a long period,
reliably encourages miners to perform work in good faith, providing a single network. The
result is a secure, ever-growing chain of data that anyone who has an internet
connection can check and supplement.
It is a complex world that begins to be very populated: in the map of the ecosystem appear the banks of bitcoin, the companies of “mining” (creation of currency) and work groups. By using cosmos crypto validator, you can validate your crypto currency, visit them to make your crypto life easy.
