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In other words, it's a gamble. .

The difficulty level of the most recent block at the time of writing is about 7,184,404,942,701. That is, the chance of a computer producing a hash below the goal is just 1 in 7,184,404,942,701 less than 1 in seven trillion. That amount is corrected every 2016 cubes, or roughly every 2 weeks, with the aim of keeping rates of mining constant.

The opposite is also true. If computational power has been taken from the network, the problem adjusts downward to earn mining easier. .

"Say I tell three friends that I'm thinking about a number between 1 and 100, and I write that number on a piece of paper and seal it in an envelope. My friends don't have to guess the exact number, they simply must be the first person to figure any number that's less than or equal to this number I am thinking of.

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"Let's say I'm thinking of the number 19. If Friend A guesses 21they lose because 21>19. If Friend B guesses 16 and Friend C guesses 12, then they've both theoretically arrived at viable answers, since 16<19 and 12<19. There is no'extra credit' for Friend B, even though B's answer was nearer to the goal answer of 19. .

"Now imagine that I present the'guess what number I am thinking of' question, however I am not asking only three friends, and I'm not thinking of a number between 1 and 100. Instead, I am asking millions of would-be miners and I'm thinking of a 64-digit hexadecimal number. Now you see that it is going to be extremely difficult to guess the right answer." .

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If 1 in seven trillion doesn't sound hard enough as is, here's the catch to the grab. Not only do bitcoin miners have to think of the right hash, but they also have to be the first to do it.

Since bitcoin mining is essentially guesswork, arriving at the ideal answer before another miner has almost everything to do with how fast your computer can create hashes. Only a decade ago, bitcoin miners could be carried out competitively on normal desktop computers. Over time, however, miners realized that graphics cards commonly utilized for video games were more effective at mining than desktops and graphics processing units (GPU) came to dominate the game.

These can run from $500 to the tens of thousands. .

Nowadays, bitcoin mining is so aggressive it can only be done profitably with all the most up-to-date ASICs. When using desktop computers, GPUs, or elderly models of ASICs, the expense of energy consumption actually exceeds the revenue generated. Even with the newest unit at your disposal, one computer is seldom enough to compete with what Day Trading Bot what miners call"mining pools" .

A mining pool is a group of miners that combine their computing ability and split the mined bitcoin between participants. A disproportionately large number of cubes are mined by pools rather than by individual miners. In July 2017, mining pools and companies represented roughly 80% to 90% of bitcoin computing power. .

Between 1 in 7 trillion odds, scaling difficulty levels, and also the massive network of consumers verifying transactions, one block of transactions is confirmed roughly every 10 minutes. However, its important to keep in mind that 10 minutes is a goal, not a rule.

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The bitcoin network can process about seven transactions per second, with transactions being logged in the blockchain each 10 minutes. As the network of bitcoin users continues to grow, however, the number of transactions made in 10 minutes will eventually exceed the number of transactions that can be processed in 10 minutes.

This dilemma at the center of the bitcoin protocol is known as scaling. While bitcoin miners generally agree that something has to be done in order to deal with scaling, there is less consensus about how can it. In the time of writing, there are two major solutions to this scaling problem, either (1) to decrease the amount of information needed to verify each block or (2) to increase the number of transactions that each block can save.

Solution 2 would cope with scaling by allowing for much more information to be processed each 10 minutes. .

In July 2017, bitcoin miners home and mining companies representing approximately 80% to 90 percent of the networks computing electricity voted to incorporate a program that will decrease the amount of information needed to verify each block. That is, they went with Solution 1.

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The program that miners voted to add to the bitcoin protocol is called a segregated witness, or SegWit. This term is an amalgamation of Segregated, meaning to separate, and Witness, which describes signatures on a bitcoin transaction. Segregated Witness, then, means to separate transaction signatures out of a block and join them within an extended block.