What you’ll learn
- How Miners confirm bitcoin transactions
- What Proof of Work means
- Can anyone be a Bitcoin Miner?
- Introduction to Bitcoin Mining Pools
In order to provide a functioning monetary system, without a central mediator, Bitcoin needs to settle transactions with ‘finality’. There can be no rolling back, or replaying transactions.
Full Nodes – introduced in the previous article in this section – will ensure transactions are valid; that they present the correct digital signatures proving the unspent funds (UTXO) associated with an address, can be spent.
But those transactions need to be confirmed in the blockchain – ensuring no double spends have taken place – which is the role played by Miners. They are paid for that service meaning they also serve the function of issuing new bitcoin.
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