Introduction

https://player.vimeo. com/video/648428800

In this section we will look at how Bitcoin blocks are created within a node, and the incentives that are in place which drive node operators to invest in the network. The process of creating each block is a competitive process, that takes on average 10 minutes, and which allocates the successful node a reward in the form of Bitcoin tokens.

The process is complex and energy intensive. At scale it requires purpose-built custom systems that will operate more like a cluster of computers than a single system. There are aspects of managing the bitcoin network that touch many of the major infrastructure elements needed for digital commerce.

Among these are:

• global telecommunication networks

• computing systems/general processing units (GPUs)

• Energy grids

The section covers the requirements of building a block template and competing for rewards. The outcomes will be a robust understanding of the base incentives that drive node operators to construct and manage the highly connected network infrastructure.