Many of you may have heard of halving in recent times but let’s see together what bitcoin halving is and why it occurs.
Some cryptocurrencies have the function that foresees in their algorithm a decrease of the prizes per block.
This is because it serves to safeguard the cryptocurrency itself and protects it from inflation which could cause collapse.
But exactly what is it and what is bitcoin halving?
What is Bitcoin Halving
The structure of bitcoin
Before starting with the concept of halving let’s try to understand how bitcoin is structured.
You should know that bitcoin is a cryptocurrency that is a set of mathematical codes that through programming is created a perfectly functional decentralized system.
That is, this system uses an exchange of data between two subjects (peer-to-peer) that interacting with each other are exchanged data.
This data can be of any nature and in this case we are talking about exchanging bitcoin tokens.
That is, a subject transfers its bitcoins (for example to pay for a service) to another subject that receives them instantly.
All this system is decentralized, that is, there is no body or person who controls the transaction and can cancel the same.
The blockchain
For example, all information, bitcoin transfers from one subject to another, are transcribed on a register called a blockchain.
This register is made up of many blocks which contain the information that occurred within a time interval.
The register cannot be violated as it is necessary to modify all the mathematical codes of the blocks that are connected to each other and it is somewhat impossible.
All the operations that take place on bitcoin, are transcribed on the blockchain by the miners.
The miners
These people through sophisticated computers perform the mathematical calculations and confirm them by transcribing them on the register (blockchain).
Every time a miners performs a calculation operation, he is paid with bitcoins for maintaining the network.
That is, every block that is solved and is transcribed on the blockchain, a reward is generated, i.e. new bitcoins.
This reward has been set in the Bitcoin code that every 210,000 solved blocks must be halved and therefore makes bitcoin scarcer.
Miners are the fundamental part of the Bitcoin ecosystem because thanks to them the whole system works.
There are other cryptocurrencies that the miners function is replaced by the represented ones or by the masternodes that have the same task but performed in a different way.
What exactly is Bitcoin halving?
With this premise we can talk about halving and how this feature can be very important for Bitcoin.
As I said earlier, halving is the event that occurs on Bitcoin where the premiums are halved per block.
That is, every time a miners solves a block, it receives bitcoins and these bitcoins become half after halving occurs.
This event has been scheduled on Bitcoin for every 210,000,000 blocks that correspond to about 4 years.
The time depends on the amount of equipment that performs the calculations, that is, the more they are, the more they increase the computing power called Hash.
This power decreases the resolution of the block but the characteristic of bitcoin is that on average each block is executed in 10min.
In addition, the Bitcoin system is programmed that the difficulty of resolving each block is fixed every 14 days.
This difficulty determines the extraction time which makes sure to always stay around 10 min.
This means that the occurrence of halving always occurs around 4 years.
The halving of bitcoins means that it will reach 0 within approximately 2140 years, causing bitcoin to become a limited and no longer extractable resource.
Obviously miners will have to try harder and harder to find a solution to halving through new computing equipment.
For this article, everything is waiting for you.