Mining is defined as the process of adding transactions and other relevant data to the Blockchain,andif successful, itresults in the generation of a new cryptocurrency unit. Now, what does this mean, exactly?
As we know, a Blockchain is a growing list of encrypted records, that callrecords blocks.Among other things, each block hasa crypto-code that represents the prior block, which connects them, forming a chain.
What makes a Blockchain secure is its network, made by nodes. Nodes are devices connected to the network through an app. These can receive, store, and send information of the Blockchain. Each one of these has a copy of all the chain’s data. These nodes can be handled by users or machines.
Because the information is distributed across all the nodes, the blockchain becomes an immutable user network. This distribution is known as decentralization, an advanced security mechanism because, if someone tries to submit wrong or fake data to the network through a compromised node, the rest of them will reject it, as the historical information stored by all of them won’t back up that input.
Before continuing, we must keep in mind that:
In a Blockchain, thousands of users are trying to carry out their“transactions”, that is, adding information to the blockchain that changes the state of it.
Information is added as data“blocks”, as we saw before. Each block can store the details of several transactions, the limit will depend on the rules of each blockchain.
You can only add 1 block at a time.
Let’s give an example: John tries to add to the new block the data of a transaction in which Cathy transferred him 10 coins. If the network confirms that 1) Cathy had thesaid number of coins available, 2) it was her who decided to transfer the amount, and 3) John is the receiver, then such information is added to the blockchain. Once there, it’s unalterable and accepted by everyone.
It’s here where miners come into play. That is, users that submit and help validate the new blocks that are added to the chain.
We can explain it better with another example:
Miners collect transactions(in the form of data), create the Block A, and encrypt all its information to generate a 256 bits number(called hash) that identifies the Block A uniquely. Let’s call that number Hash A.
If the block is validated, the miners work to create the Block B and connect it to the Block A. So they collect another group of transactions and add the Hash A to the Block B. Then they make the network validate the new set of transactions and the Hash A to add the Block B to the blockchain.
Now, you can’t just add a hash to a block and then to the network. To be the miner that submits the next block, you must win a competition to find the correct hash, as this number works to solve a difficult math problem that the blockchain itself generates to make the network moresecure.
The first miner to solve the math problem can validate the block that it has created andthen add it to the network. It’s here when miners receive coins as a reward for their hard work.
This makes the process competition and, like all competitions, rules must be established. It’s here where different blockchains apply, each one, a“protocol” or series of requirements that the miner must fulfill to obtain the right hash.
Arian Coin represents an innovation because our Interactive Node is the only one with an integrated game as a tool for mining, thanks to its Proof of Achievement protocol. This protocol requires the interaction of the user with their device to mine, which keeps the network decentralized and free of monopolies made by expensive mining equipment.
has been created with special features to solve one of the greatest disadvantages of cryptocurrency mining: excessive energy consumption. Additionally, the Interactive Node eliminates the need of expensive computing equipment and specialized software, which represents a high percentage of the expenses of this activity.