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Bitcoin Difficulty — a measure of how difficult it is to generate a correct hash. It is designed so that mining one block will take approximately 10 minutes. As more miners join in, the rate of block generation inevitably goes up.

Then, after the difficulty level is recalculated, it rises in order to compensate and bring the rate of block creating back down. Any block released by fraudulent miners that does not meet the required difficulty level will be rejected by everyone on the network, thus becoming worthless.

So, this process requires exertion and through it new currency slowly becomes available. The rate at which new coins appear resembles the rate at which commodities like gold are mined from the ground. We are considering your request and will contact you in due course. If you have any further queries, please contact:. Section Guide What is Cryptocurrency. Guide for Beginners What is Bitcoin? History, characteristics, pros and cons How to Buy Bitcoin: Page Contents What is Bitcoin Mining.

More guides Bitcoin What is Cryptocurrency. Blocks are secured by Bitcoin miners and build on top of each other forming a chain. This ledger of past transactions is called the blockchain. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Bitcoin Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady over time, producing a controlled finite monetary supply. Individual blocks must contain a proof-of-work to be considered valid.

This proof-of-work PoW is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses a PoW function to protect against double-spending, which also makes Bitcoin's ledger immutable.

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 the system. Miners are paid transaction fees as well as a subsidy of newly created coins, called block rewards.

This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system through mining. During the last several years an incredible amount of Bitcoin mining power hashrate has come online making it harder for individuals to have enough hashrate to single-handedly solve a block and earn the payout reward. To compensate for this pool mining was introduced.

Pooled mining is a mining approach where groups of individual miners contribute to the generation of a block, and then split the block reward according the contributed processing power.