What is Bongacoin Mining? - Peer to Peer Secure Money

What is Bongacoin Mining?

Bongacoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new Bongacoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards. The mining process itself involves competing with other cryptominers to solve complicated mathematical problems with cryptographic hash functions that are associated with a block containing the transaction data. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released Bongacoin.

The amount of new Bongacoin released with each mined block is called the block reward. The block reward is halved every 1401600 blocks, or roughly every 4 years. The block reward started at 1 Bonga, and will continue to decrease. This diminishing block reward will result in a total release of Bongacoin that is 25 million.

How hard are the puzzles involved in mining? Well, that depends on how much effort is being put into mining across the network. The difficulty of the mining can be adjusted, and is adjusted by the protocol every 10 blocks, or roughly every 15 Minute. The difficulty adjusts itself with the aim of keeping the rate of block discovery constant. Thus if more computational power is employed in mining, then the difficulty will adjust upwards to make mining harder. And if computational power is taken off of the network, the opposite happens. The difficulty adjusts downward to make mining easier.

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