Bitcoin doesn't have a central government. With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in. Jul 2, You may have heard of the famous P versus NP problem. If you can prove or disprove its cryptically short equation, you'd be a million dollars. Oct 19, Looking under the hood of the bitcoin protocol helps give insight to the mathematical foundations of the digital currency. Rather, I'm asking millions of would-be miners and I'm thinking of a digit hexadecimal number. Haribo Oct 11 '13 at This question has been asked before and already has an answer. This is why Just click for source have high hopes for alternative cryptocurrencies, such as Peercoinproblejs implement proof-of-stake. They are maintaining and updating the block chain. Share Tweet. Far less prolbems but equally uncertain, bitcoin mining is performed by high-powered computers that solve complex computational math problems read: so complex that they cannot be solved by hand. True, but it also has the something-for-nothing vibe that makes physicists nuts. And second, by solving computational math problems, bitcoin miners make the bitcoin payment network trustworthy and secure, by verifying its transaction information. If I try to send the bitcoin wallet address generator Bitcoin to two different accounts, the miners choose one transaction or the other and use it as the basis of the computations they do. SHA hash is a function where you can input a text of any length 20 Bytes or 2 GBit generates a random string of bits 32 bytes. Plus you don't have to worry about anything other than tweaking your portfolio of coins. Which blockchain prevails? Here is a visual so you have a better idea: 0 Payments with 0 confirmations can still be reversed!