The BTC blockchain is a complex ecosystem that functions through the participation of miners. They are the most notable technical piece of the Bitcoin puzzle, earning new crypto and participating in blockchain transactions. The question is, how do Bitcoin miners maintain such a complex network?

The Importance of Bitcoin Mining

BTC mining is how new bitcoin is created, and how blockchain transactions are verified. This is done through the use of high-powered and specialized computers. These computers compete to solve complex mathematical problems. When these problems are solved, and the solution is verified, the owner of the computer is rewarded with BTC.  Now, the mining process is not only a way for miners to earn BTC, but it’s how transactions are verified between parties and recorded on the blockchain.

Without the miner, there would be no way for the information to get added to the blockchain, and no way to verify its authenticity. Miners have the incentive to participate in blockchain maintenance because once they solve a problem like transactional verification on the ledger, they get rewards in Bitcoin. Without Bitcoin miners, there would be no blockchain.

A Mutually Beneficial Agreement

Individuals and companies use bitcoin to transact in, or as an investment. The more people buy, or sell on the blockchain, the more the miners need to compete to verify these transactions. Since many of these transactions now occur globally, and it’s become more difficult to mine BTC, more miners are necessary for the blockchain to function.

A Continued Incentive to Mine

The creator of Bitcoin designed the blockchain to have a finite number of minable Bitcoin. Every four years since its creation, the BTC rewards for miners are cut in half. A term referred to as halving. Halving ensures that Bitcoin can survive for decades (to 2140) as a mineable resource while increasing its value through scarcity. This also ensures the BTC blockchain itself can last another 120 or so years.

When looking at bitcoin’s value, you’ll also notice how the halving sometimes coincides with large spikes in Bitcoin’s price. Since 2020, bitcoin rewards for solving a block have been halved to 6.25 BTC from 2016’s 12.5 BTC reward. In 2024, another halving will occur, giving miners the opportunity to earn 3.125 BTC per block.

While miners are getting smaller rewards, Bitcoin’s increased value often justifies running a potentially expensive operation. And since the rewards get halved every four years, BTC become “scarcer” making it potentially even more valuable.

Decentralization

Bitcoin cryptographic puzzle verifications happen through computers set up in different parts of the world. There is no monopoly in terms of BTC transactions as millions of computers, owned by an untold number of individuals and companies compete for the rewards. The BTC ecosystem is decentralized, meaning no one organization controls the BTC blockchain. While the mining industry has shifted to several powerhouses, like the United States, every BTC miner operating globally is a piece of the puzzle. There is no central authority that dictates the flow of bitcoin nor its value.

The blockchain technology itself, and the miners who operate it, is designed to prevent transactional fraud. Once a transaction is verified and logged on to the ledger, it’s nearly impossible to alter the information recorded. To alter it (defraud the system) would require unraveling a chain of other blocks. It would require far too much computing power and energy to make it worthwhile. It’s simply too expensive to even try.

What You Need to Mine the BTC Blockchain

A Bitcoin miner will need various hardware and software to ensure that they can participate in mining. For Bitcoin, most miners use an ASIC, a computer specializing in Bitcoin mining. To truly compete for the rewards, miners set up thousands of ASICs with specialized software for mining.

Once set up, the operations generally run without much help. For the most part, miners only must maintain the power and infrastructure, and carefully control the machine’s operating temperatures. The only time they’ll need to intervene is if their ASICs need maintenance, or there is an infrastructure issue.

Mining is Central to Blockchain Operations

Even outside of Bitcoin, other blockchains have miners that contribute and participate in each particular network. The main difference (on the mining side) is that there are more miners in bitcoin than any other cryptocurrency. Ethereum is currently the second most popular blockchain platform, yet pales in comparison to the size of Bitcoin.  As long as miners are operating, the BTC blockchain will continue to thrive and survive, and may stay that way until the last block is completed in 2140.

Outside of profitability, the main concern with cryptocurrency mining, in general, is energy usage and the environment. It’s why companies like BlockQuarry have made leading efforts to make the crypto space eco-friendly. BlockQuarry hosts mining activities with 100% renewable, 100% clean, net-carbon-zero, nuclear energy.

BlockQuarry helps maintain the Bitcoin blockchain with among the smallest footprints in the space. In fact, the company not only operates at net-carbon-zero but has partnered to plant over 1,000 trees to help reduce carbon in the atmosphere.