No Bitcoin is calculated on the computers at mining farms, which are designed for Bitcoin mining. Instead, the operators of these computers receive a fixed number of Bitcoin as a reward or remuneration for operating the Bitcoin blockchain.
In order to understand what happens on mining PCs, one must take a closer look at Bitcoin technology. In principle, Bitcoin is not in any way a virtual coin; a Bitcoin consists, put simply, of an entry in an extremely encrypted database –– the Bitcoin blockchain. This entry documents a transaction and consists of three pieces of information:
- The wallet address of the sender’s Bitcoin account
- The wallet address of the recipient’s Bitcoin account
- The quantity of Bitcoin sent
An entry is encrypted so that it cannot be changed. Then, mining computers confirm the accuracy of the transaction based on cryptographic procedures. Finally, the entry is then stored in a block in the Bitcoin blockchain.
This blockchain is actually a single database; it’s an entity that is updated, checked, and mutually confirmed by every computer in the Bitcoin network (the miners). All mining computers, also referred to as nodes, work with this one identical, non-manipulable database. Currently, the database has a size of 250 GB. The mining machines work to maintain the Bitcoin network by checking, validating, and encrypting transactions. To do this, they calculate new blocks in which transaction information is stored and cryptographically sealed. For the computing power required for this work, they receive a reward. This process is called proof-of-work: By calculating and solving complex cryptographic tasks, they confirm that the activity was actually performed.