Rigly on Nostr: While we work on our platform this week (offline until the 15th), we wanted to take ...

While we work on our platform this week (offline until the 15th), we wanted to take this time to provide some educational content.

This week, we’ll dive into mining.

What is Bitcoin mining in the simplest terms?
Mining is a lottery to create new blocks (or unlock blocks) in the Bitcoin blockchain.

There are two primary functions of miners, and in turn two ways that they make $:
1. They collect fees by verifying transactions and adding them to the blockchain.
2. They receive block rewards for unlocking new blocks and adding to the overall bitcoin supply.

Other important details about mining:
1. New block mined every ~10 minutes (difficulty adjustment regulates this to keep it near ~10 mins)
2. ~144 new transaction blocks are added to the blockchain each day
3. Block reward = 6.25 BTC per block, so ~900 new blocks each day (until the halving in ~10 days)
4. Average Transaction fee for miner = ~.000074 BTC.

Tomorrow we will dive hash, hashrate, hashprice and how mining actually works.