Key Terms & Numbers about Blockchain

 Key Terms & Numbers about Blockchain

• Block Reward - The block reward is the ‘freshly minted coins’ given to the miners as a rewards for solving a block. As of the current time period i.e., before the next halving that will happen in 2024, the miner who adds the block to the blockchain network gets 6.25 BTC.

• Hash Power - A hash describes the hash function; and hash rate is the rate at which a computer (miner) performs a task within the cryptocurrency node. This is the measure of hashing per second. Thus, higher the hash power, the probability to mint a block is also high.

• Transaction Fees - Crypto network such as Bitcoin offers the miners a substantial ‘transaction fees’. These fees is the total amount paid by Bitcoin users to execute the transactions. To make you/me understand easy “Lets’ say you/me want to send Nu. 100 to your/my friend. However, the FDX or a courier service like DHL charges extra Nu. 10 i.e., a total of Nu. 110. Thus, Nu. 10 is the transaction fee that you are paying to the courier service”

• Luck - Luck refers to the probability of the success in adding the block to the network. It’s similar to the play that you make on Bhutan Lottery Limited ie., if you have higher luck than the rest of the players, the probability to win is also higher for you”. For example, let’s say the overall hashing power of the network is 20TH/s, and you are providing 10TH/s of the total 20TH/s; while the other two (X & Y) provides 5TH/s each.Thus, the probability of winning is higher for you as you contributed 50% of the total network hash power unlike the other two (X&Y) who contributes 25% each.

           Now your questions, what if both X & Y finds the block at the same time? Will answer these                   doubts in the succeeding topics.

•  Bitcoin consumes 121 Terawatts of Electricity in a year ~ equivalent to the use of electricity by The Netherlands. 
  

• The end of bitcoin mining by 2140? And already around 19 million out of 21 million already mined i.e., already 92% mined.

• 9 years of a typical household electricity is required to mine a single BTC (As of August, 2021) 

• BTC value as low as $4,107 in the year 2020 and as high as $68,790 in November, 2021

• Solo Mining - a chance of 1 in 26.9 million (As of Jan, 2023). 

• 144 blocks added in a day = 900 BTC mined in a day

• Overall mining in %tage (As of Jan, 2022)
• 37.4% in US
• 18.1% in Mainland China
• 14% in Kazakhstan 

 

 Whats all the machines going to do  after the completion of all 21million BTC? Where could be the         other 30% happening?