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late 2012). Miners also verify blocks produced by other miners to allow the entire network to continue building on the blockchain. Finding Valid Blocks To find a valid block, the miner builds a list of recent transactions and calculates some summary information about the proposed block. This summary is combined with a number called a nonce to create a block header. The hash of the block header is then calculated and to see if it is small enough to win at the current difficulty. If not, the nonce is changed and the new hash is calculated and tested. There is no way to create a valid block except by a brute force search. Brute force means the miner tries one nonce, then another, and another, repeating the process until it gets lucky. During that search, the miner cannot predict if the next nonce will give a smaller hash than the last. Since it is a brute force process, the only way to increase your chances of winning are to increase the speed with which you can try nonces. The more processing power you have at your disposal, the faster you can search and the more likely you will be to find a winning block. 11 Introduction to Bitcoin MiningPDF Image | Introduction to Bitcoin Mining 2012
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