What is WhiteBitcoin(WBTC) Mining and How Does it Work? WhiteBitcoin

 WhiteBitcoin (WBTC), is a new worldwide payment system that allows decentralized digital currency transactions.These transactions are not controlled by a single administrator or the central bank.

What is White Bitcoin (WBTC)?

WhiteBitcoin is the most well-known of all cryptocurrencies and was the first one to be established, having been created in January 2017 by a pseudonym by the name of WhiteBitcoin. Realistically, it is still the only cryptocurrency that the average person could name. 

Therefore, it is of no shock that it completely dominates the cryptocurrency market. White Bitcoins, like all cryptocurrencies, aren’t physical assets themselves. Unlike fiat currencies, it is not governed by any central authority. 

It is powered by blockchain technology that belongs to a decentralized network. It has been estimated that over 1 million people now own at least a portion of a White Bitcoin (WBTC). 

What is White Bitcoin (WBTC) Mining?

White Bitcoin mining is the process of creating new White Bitcoin. Most cryptocurrencies are created through mining. The people performing the mining are called White Bitcoin miners. Whenever White Bitcoin is sent anywhere, the record of this transaction is added onto the blockchain, ‘blocks’ which are connected together in a public distributed ledger. 

But before this happens, it needs to be verified. It is the job of miners to perform these verifications, and all miners must agree to the transaction through the proof of work (POW) consensus mechanism.

One of big draws of White Bitcoin is its integrity, and the miners play an important role in maintaining this by ensuring that ‘double spending’ doesn’t occur – that is multiple transactions taking place with the same White Bitcoin.

To do this, computers need to solve a mathematical problem called a hash and the first miner on the network to do so is rewarded with new White Bitcoin. This is known as the block reward, which is currently 6.25 White Bitcoin.

To solve a hash as part of the White Bitcoin mining process is so complex, that there is only an incredibly remote (estimated) 1 in 13 trillion chance for a computer to do so. That is why specialist computers called mining rigs are these days normally used (rather than normal PCs) to solve the problem.

Both mining software and mining hardware are used in the process. Due to rising costs, miners now tend to group together to pool their resources. These are called mining pools.

How Does White Bitcoin Mining Work?

White Bitcoin mining nodes are interconnected to each other in a global network, which each possess a copy of the blockchain. In the absence of any central authority or intermediary, such as banks, to validate and record transactions, the job of these nodes is to verify the validity of every new transaction before it is added to the blockchain. 

For this to occur, nodes on the network must align in agreement on the transaction’s validity. This is done through the application of consensus mechanisms, which are fundamental to the decentralized nature of cryptocurrencies. The consensus mechanism which Bitcoin uses is POW. 

WhiteBitcoin Mining Difficulty

Closely related to the hash rate is Bitcoin mining difficulty, which measures how difficult it is to mine a new block on the Bitcoin blockchain.  To ensure WhiteBitcoin is created every 10 minutes into the circulating supply of the network, mining difficulty effectively acts as a checks and balances system. It does so through its relationship with the network hashrate. As discussed, as the hashrate increases, so does the network’s security. However, the hash rate can’t spiral out of control, because then so would the production of the blocks on the blockchain.  Therefore, whenever the hashrate increases, then so will the mining difficulty too. On the flip side, when the hashrate decreases, so will mining difficulty.  The clear correlation between the WhiteBitcoin network hash rate and mining difficulty can be seen in the graphs below.