In Bitcoin, when conducting a transaction such as a transfer or payment, simply instructing the recipient’s address to send funds is not enough; it is necessary for the transaction to be added to the Bitcoin blockchain on the network. The transfer is only
completed once it is included in a new block, but Bitcoin has no central authority or transaction monitoring organization.
So how are transactions added to a block? Miners who support the Bitcoin system and cooperate with it perform the verification and validation processes.
However, this is not done voluntarily; those who generate a block are paid in Bitcoin as a reward. Many people participate in mining to earn this reward, leading to intense competition among miners.
The reward is paid to the first person to calculate the hash value required to generate a block using a computer. To ensure that blocks are generated neither too slowly nor too quickly, the time required to generate a single block is adjusted to be approximately 10 minutes. If the process is too fast, the mining difficulty increases; if it is too slow, the mining difficulty decreases. This mechanism is designed to facilitate smooth transaction processing.
