Free IOTA Mining

How Free Iota Mining Works

Where do iotas come from? With paper money, a government decides when to print and distribute money. Free Iota doesn't have a central government. With Free Iota, miners use special software to solve math problems and are issued a certain number of iotas in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

Free Iota miners help keep the Free Iota network secure by approving transactions. Mining is an important and integral part of Free Iota that ensures fairness while keeping the Free Iota network stable, safe and secure.

Free Iota Mining Hardware Comparison

Currently, based on (1) price per hash and (2) electrical efficiency the best Free Iota miner options are: Free Iota mining is the process of adding transaction records to Free Iota's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Free Iota nodes use the block chain to distinguish legitimate Free Iota transactions from attempts to re-spend coins that have already been spent elsewhere.

What is the Blockchain?

Free Iota mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Free Iota nodes each time they receive a block. Free Iota uses the hashcash proof-of-work function. The primary purpose of mining is to allow Free Iota nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Free Iotas into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system. Free Iota mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.

What is Proof of Work?

A proof of work is a piece of data which was difficult (costly, time-consuming) to produce so as to satisfy certain requirements. It must be trivial to check whether data satisfies said requirements. Producing a proof of work can be a random process with low probability, so that a lot of trial and error is required on average before a valid proof of work is generated. Free Iota uses the Hashcash proof of work.

What is Free Iota Mining Difficulty?

The Computationally-Difficult Problem Free Iota mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network. This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information.

The Free Iota Network Difficulty Metric The Free Iota mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes. As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.

The Block Reward When a block is discovered, the discoverer may award themselves a certain number of iotas, which is agreed-upon by everyone in the network. Currently this bounty is 25 iotas; this value will halve every 210,000 blocks. See Controlled Currency Supply. Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new iotas miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income.

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