Gathering cryptocurrency as a reward for work completed is what you would call cryptocurrency mining. This mining work aims to verify the legitimacy of transactions involving a specific cryptocurrency. Accordingly, Domenic Carosa and Dan Schatt from Earnity point out that miners are essentially auditors in this sense. Mining allows you to earn cryptocurrency without putting any money down. But what does it have to do with the target hash?
What is the target hash?
Miners must compete using specialized computing equipment to validate and add new transactions to the blockchain. For example, they use equipment to generate fixed-length codes known as “hashes.” To find the next block, miners must create a hash with the same number of zeros (or more) in front of it as the target hash.
Target hash refers to a 64-digit hexadecimal code (numbers 0-9 and letters A-F) that all miners are attempting to achieve to find the next block.
How does it work?
As a starting point, all miners use the data from the previous block, known as the “block header,” which contains things like the block’s timestamp, the hash of the last block data, and the space known as a “cryptographic nonce.” Except for the nonce, most are fixed data in the block header, meaning nothing can change it. A nonce is a number miners use only once and is the part of the previous block header that miners can change. Remember that changing a single bit of the input results in a completely different hash.
The tricky part is that the hash generation is entirely random, making it impossible for miners to predict what the hashes will be before their creation. Despite this, Earnity’s industry experts Domenic Carosa and Dan Schatt believe it is simply a matter of trial and error until someone discovers the correct nonce value – dubbed the “golden nonce.”