Fun Bitcoin : What is it? : Crypto


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 If a stake owner (sometimes called a validator) is chosen to validate a new group of transactions, they’ll be rewarded with cryptocurrency, potentially in the amount of aggregate transaction fees from the block of transactions. 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In order for blocks to be valid, all inputs must be valid and each block must satisfy the current network difficulty. To satisfy the network difficulty, a random value (referred to as a nonce) is added to each block and then the combined data set is run through bitcoin’s cryptographic hashing algorithm (SHA-256); the resulting output (or hash) must achieve the network’s difficulty in order to be valid. Think of this as a simple guess and check function, but probabilistically, trillions of random values must be guessed and checked in order to create a valid proof for each proposed block. The addition of a random nonce may seem extraneous. 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