Let’s understand the term bitcoin. It is a digital currency, essentially a cryptocurrency that uses rules of cryptography to regulate and generate units of currency. Bitcoin is made up of two words, ‘Bit’ & ‘Coin’.
With bitcoin, there is no involvement of any middle men. Every transaction can be done directly, without the involvement of any bank. In addition, international payments get relatively cheaper because bitcoins are not governed by regulatory policies of any country.
Planning to Buy? Consult Our Product Experts for Finance
This decentralized digital currency is a valuable one in the list of cryptocurrencies. You can simply buy bitcoins using real currency, and then buy things with bitcoins. You can also create bitcoin by using your computer.
Ever wondered how bitcoin mining software works?
Bitcoin uses this technique of cryptography to convert transaction data using blockchain.
Bitcoin works on the supply and demand concept which emphasises that something has more value if it is limited. The higher the demand, the higher the price. Bitcoin’s supply is limited, and it is produced at a fixed rate, which decreases over time.
We need to record transactions in a database, essentially an excel sheet. In bitcoin terminology, this shared database is called distributed ledger that can be accessed using the blockchain.
Say for instance, you need to send bitcoin to someone. You must first digitally sign a message that says, “I am sending 70 bitcoins to ABC”. This message is then broadcasted to all computers in the network. These computers then store your message on the database also called the ledger.
To store your bitcoin, you need a bitcoin wallet. To create this wallet, you get public and private keys which are a set of numbers and letters like username and password. Anyone can use your public key to send money, while your private key must remain confidential as it is your identity. The private key helps access your bitcoin wallet and must be kept a secret so that your bitcoin remains safe.
What Is Double Spending in Bitcoin?
In the bitcoin transaction process, transactions are stored in blocks that are linked to each other in series, thus making a blockchain. Each transaction has a public key written on it. However, your transaction will have a private key. Also, you must remember that you cannot spend a bitcoin twice since all blocks are connected.
Let’s see what will happen (through real life example) if one tries sending the same bitcoin twice. Let’s say ABC sends XYZ a bitcoin. This transaction gets stored in a block on the blockchain. The very next day, ABC tries to send the same bitcoin to another person. What’ll happen? This transaction also goes in the current block on the blockchain. The computers then check the last block, that says that the bitcoin was sent to XYZ’s public key.
However, since it isn’t XYZ‘s public key on the bitcoin being sent into the current block, the computers running the blockchain do not let the bitcoin be used again. This means that one bitcoin’s public key can’t be used more than once.
List of the 5 Best Bitcoin Mining Software 2020
Now that we’re familiar with bitcoin mining, let’s read through the list of best bitcoin mining software available in 2020.
What makes BitMinter exclusive?
The fact that it has its own mining pool to work with makes it one of the top bitcoin mining software available today. Bitcoin mining pool, BitMinter is one of the oldest pools that was introduced in 2011.
It works with an intent to ease out the process of making bitcoins. BitMinter is a great option if you need a cross-platform bitcoin mining software.
- BitMinter client is compatible with Windows, Mac OS X and Linux. It need not be installed and is based on the Java Network Launch Protocol.
- The BitMinter client has a very clear and easy graphical interface. It works well with both external ASIC devices as well as GPUs.
- To start mining, you can simply click the 'Engine Start' option. You can see the 'Stats' section of BitMinter to track progress.
- It also provides significant information about proofs of work that was accepted or rejected by the server. Also, it keeps track of the time you spend working on projects.
- A text console at the bottom of the window of BitMinter client provides users with updates about when was a device connected to a mining pool.
Designed for ASIC mining hardware, BFGMiner is a customizable bitcoin mining software. One of the easiest bitcoin mining software, BFGMiner is ideal for mining cryptocurrencies that are not ASIC resistant.
- It is very similar to CGMiner, the only difference being that instead of supporting GPUs and CPUs, it works with application-specific integrated circuits.
- The Field-Programmable Gate Arra/ application-specific integrated circuit miner has dynamic clocking, and remote interface capabilities.
- It connects to several mining pools and can conveniently monitor the temperature of most devices.
- The software interface is text-based, and you can use hotkeys if you want to monitor pools, recognize devices and enable extra features.
- Additionally, BFGMiner bitcoin mining software has a Getwork Stratum proxy server as well as a built-in stratum.
A great advantage of using BFGMiner is that it provides users with summaries and data statistics of all requests and accepts. It also provides details about all rejects, efficiency and utility, and HW errors.
BFGMiner provides several device drivers for bitcoin. Drillbit Thumb and Eight, Ztex's FPGA boards and Twinfury USB stick miner are amongst the many device drivers for bitcoin that this software has.
A desktop application for crypto-coin mining, MultiMiner is compatible with Windows, Mac OS X and Linux. With MultiMiner, you can simply switch individual devices supporting GPUs, ASICs and FPGAs between litecoin and bitcoin crypto-currencies. It is one of the fastest bitcoin mining software of 2020.
- You can detect mining hardware with MultiMiner’s mining engine i.e. BFGMiner. Further, yu can then pick the coins you want to mine by looking at its intuitive screen.
- This bitcoin mining software for Mac caters to new miners as well as power users. MultiMiner has ‘Getting Started’ wizard to ‘MultiMiner Remoting’ to cater to all your bitcoin mining needs.
- Automatic detection of network devices and other advanced features in MultiMiner can be used without any configuration.
- MultiMiner’s source code has a structure that makes it user-friendly. Additionally, it can be re-used for other projects. This source code is regularly updated, and it is publicly available.
- You can use tools like Visual Studio Express for Desktop, Xamarin Studio, and MonoDevelop in case you want to download and compile the source code.
A graphical frontend for the mining programs CPUMiner and CGminer, EasyMiner mining software facilitates users to mine Litecoin, bitcoin and other cryptocurrencies.
- EasyMiner works only on Windows. Users can select their own pool in "Solo" mode of EasyMiner. You can also custom hash algorithm in accordance with the coin they want to mine.
- You can use EasyMiner’s MoneyMaker tool which helps you create a paper Litecoin wallet and start mining right away with a private pool. This bitcoin mining software supports ccminer, cudaminer, minerd, cgminer and ASIC mining for bitcoin.
- Also, it is noteworthy to mention that EasyMiner uses the Network Hardware ID Layer protocol to provide extra security for wallet architecture and pool stratum.
CGMiner bitcoin mining software windows is coded in C, which means it’s compatible with almost all operating systems.
One of the latest bitcoin mining software, CGMiner supports multiple mining pools and devices. Its advantage is that it works through a simple command line interface and is apt for use with hardware mining devices. It can use any GPU that is connected to your machine.
This command line application has full monitoring and fan speed control. CGMiner also has remote interface capabilities and has a scalable networking scheduler that has capabilities to of scaling to hash rates of all sizes without delays.
A great advantage of CGMiner is that it has various pools with intelligent failover mechanisms, and it helps avoid stale work submission on new blocks.
To sum up, bitcoin is an innovative payment gateway network. It is a cryptocurrency that is instant and private. This digital money can be stored and exchanged safely on the internet through a digital ledger known as a blockchain. Bitcoin mining is the process of creating bitcoin. It is means to introduce more coins into the system.