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Bitcoin has become one of the hottest trends in recent years. Last year, it surpassed Donald Trump in Google searches. Everyone is talking about bitcoin. Many people don’t exactly understand the concept.

In laymen's terms, bitcoin is a ledger. A ledger is a set of transactions. Let’s understand this with an example.

Suppose you go to a grocery store. You buy vegetables for $15. The ledger entry will be — You are paying the vegetable owner 15 dollars.

Then, let’s say the vegetable guy goes to a doctor and pays $10 for a medical examination. The ledger entry will be — The vegetable owner is paying 10 dollars to the doctor.

These all are considered as a set of transactions. This is similar to what we see in our bank account statements. A ledger is a set of transactions, and at the end, you have your account balance. This is what bitcoin is in a nutshell.

In this article, we will first learn the blockchain and how mining works. Then we will learn how to do bitcoin mining in python.

Let’s get started.

Blockchain and Transactions

In the bitcoin ledger, all transactions are stored in blocks. It contains millions of transactions from the time when bitcoin was invented. It contains several blocks for these transactions that grows every day.

These blocks are linked as a linked list. Just like linked lists have multiple nodes where all nodes are connected to another, blockchain has multiple blocks.