Bitcoin Mining Explained: From Hashing to Block Confirmation

Many people have heard the term “mining,” but it often sounds mysterious and highly technical. In reality, Bitcoin mining is a global digital bookkeeping race. Miners compete to make sure every Bitcoin transaction is real and trustworthy. This article breaks down the full mining process step by step. As active participants in mining and block creation, we will show how a transaction moves from your wallet and becomes a permanent record on the blockchain that can never be changed.

How Is a Block Created?

Before mining starts, a miner must first assemble a block. A mining machine selects hundreds or even thousands of pending transactions from the global waiting pool. The miner then packs these transactions into a data container called a “block.”

To make this container unique and secure, the miner creates a detailed “ID card” for it. This ID card is called the block header. The most important part of the block header is the “previous block hash.” You can think of it as the unique ID of the last container. It is a 64-character string made of numbers and letters. This string records all the features of the previous block.

The miner must copy this hash into the new block. This step links the old block and the new block together like metal rings in a chain. If anyone tries to change any data in a past block, this 64-character hash will change right away. When that happens, the entire chain breaks.

The block header also includes a summary of all current transactions. This summary is called the Merkle root. The miner does not place every transaction detail into one formula. Instead, the system combines transactions step by step until they become one unique string. This string works like a fingerprint for all the goods inside the container. If someone changes even one decimal in a transaction, this fingerprint becomes invalid.

The block header also includes a version number, a timestamp, and a difficulty target set by the system. Together, these items form a fixed data package. Inside this package, only one small space is flexible. That space is called the “nonce.” This fully assembled package is the only material the miner uses for the next stage of heavy computation.

Many beginners ask, “Why is my Bitcoin transfer still not confirmed?” The answer depends on how miners choose transactions. Miners usually pick transactions with higher fees first. If your fee is too low, your transaction may stay in the waiting pool for a long time. A single block can usually hold about 2,000 to 3,000 transactions.

The Hash Race

Once the data package is ready, the miner enters the most intense stage of mining. This stage involves a common question: what is hashrate? In simple terms, hashrate is the number of guesses a mining machine can make per second.

Miners use a core tool called the SHA-256 algorithm. This math function is very special. When you input the data package into it, the function instantly outputs a 64-character string. The system does not accept just any result. It sets a very high bar. The output must start with a specific number of zeros. In the current network, the result may need to start with 19 zeros in a row.

The history data and transaction data are fixed. The miner can only change one small number, which is the nonce. The miner keeps changing this number and runs the calculation again and again. This process explains why mining uses so much electricity. The machine must burn a lot of energy to try trillions of guesses every second.

A miner with higher hashrate can try more guesses in the same amount of time. Only when a miner finds the “golden nonce” that produces enough leading zeros does it win the right to record the block. This process proves work by burning real computing power. This proof is the core reason the blockchain stays fair and secure.

Network Broadcast and Fast Verification

While thousands of machines around the world are running calculations, one miner will eventually find the golden nonce first. That miner will stop working right away. The miner then broadcasts the new block to the entire network over the internet.

This moment is like a global treasure hunt. One person finds the prize and immediately announces that the game is over. The message spreads across mining pools and servers within seconds.

At this point, other miners and nodes switch roles. They stop competing and start acting as judges. Finding the nonce takes huge effort, but checking it is very easy. The verification takes less than one second. Other nodes simply plug the nonce into the same formula and run it once.

If the resulting hash has enough leading zeros, and if every transaction is valid with no double spending, the nodes accept the result. This rule, where finding is hard but checking is easy, is a key reason the blockchain can run efficiently. Once most nodes agree, the new block is considered valid. Other miners then move on and prepare for the next block.

Many users ask, “Why do exchanges usually require six confirmations?” One confirmation means the block is already added to the chain. However, people wait for five more blocks to reduce any risk of reversal. As more blocks stack on top, the cost to undo the earlier block grows very fast. This layered confirmation system ensures that even the most powerful computers cannot change records deep in the chain.

Block Finalization and Miner Rewards

After verification, the new block is officially attached to the end of the blockchain. All Bitcoin ledgers around the world update at the same time. Transactions that were waiting are now stamped as “confirmed.” This status means the Bitcoin has truly changed ownership and can never be taken back.

For the winning miner, this is the most exciting moment. At the top of every new block, there is a special record called the “coinbase transaction.” This transaction does not come from any user. The system creates it from nothing. The system sends the new Bitcoin reward, plus all transaction fees in the block, directly to the miner’s wallet.

This design serves two purposes. It issues new Bitcoin into circulation. It also rewards miners who protect the network. This financial incentive attracts more computing power and makes the network harder to attack.

Many users worry, “What happens after all 21 million Bitcoin are mined?” Miner income comes from two sources: block rewards and transaction fees. The block reward is cut in half every four years. In the future, when no new Bitcoin are created, transaction fees will become the main income for miners. As long as people keep using Bitcoin for transfers, miners will have a reason to secure the ledger. This model allows the Bitcoin network to keep running even far into the future.

Visit the Bitdeer Learning Hub for More Practical Insights

At this point, the full life cycle of a Bitcoin block is complete. The process starts with transaction packing. It continues with brute-force hashing. It moves on to network-wide verification. It ends with rewards being paid. Every step depends on the one before it.

This design solves the trust problem in the digital world. It also introduces a new type of asset in human history.

If you want to track block creation speed in real time, or if you want to join this global accounting race with SEALMINER hardware, you are welcome to visit Bitdeer. You can also explore the Bitdeer Learning Hub for more hands-on guides. We offer a full knowledge base, from beginner topics to advanced mining skills, to help you move forward with confidence in the world of hashrate.