This is one of the problem with this Proof of Work mechanism. It has to consume a lot of electricity to solve the problem. If you don't win a block's race, the energy used during those 10 minutes you tried to solve the problem is wasted. This is one of the reasons why the blockchain mechanism doesn't scale so well.
I believe you can't compete as an individual today against mining farms. I know you can 'rent' some mining powers. Like, you pay 20 000 € to generate 0.00000001 BTC each second. As far as I know, you need to have a powerful installation to make a profit from this kind of activity.
I believe you are confusing the Coinbase plateform and the coinbase transaction. Yes, Coinbase is a plateform that allows you to buy and sell crypto currencies. You're right, it does look like a central bank now, because so much transactions go through plateforms such as this, which kind of defy the purpose of a decentralized currency.
The coinbase transaction is just a transaction that the miner includes in the block he is mining. The miner indicates that he is paying himself. In the article, our miner Joe said to the network that he calculated his reward ( 17 or so BTC ) and gave his wallet's address. When the block is validated, the miner receives the reward in its wallet.
It is called a coinbase transaction, but it has nothing to do with the Coinbase plateform.
Thank you for the kind words :)
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This is one of the problem with this Proof of Work mechanism. It has to consume a lot of electricity to solve the problem. If you don't win a block's race, the energy used during those 10 minutes you tried to solve the problem is wasted. This is one of the reasons why the blockchain mechanism doesn't scale so well.
I believe you can't compete as an individual today against mining farms. I know you can 'rent' some mining powers. Like, you pay 20 000 € to generate 0.00000001 BTC each second. As far as I know, you need to have a powerful installation to make a profit from this kind of activity.
I believe you are confusing the Coinbase plateform and the coinbase transaction. Yes, Coinbase is a plateform that allows you to buy and sell crypto currencies. You're right, it does look like a central bank now, because so much transactions go through plateforms such as this, which kind of defy the purpose of a decentralized currency.
The coinbase transaction is just a transaction that the miner includes in the block he is mining. The miner indicates that he is paying himself. In the article, our miner Joe said to the network that he calculated his reward ( 17 or so BTC ) and gave his wallet's address. When the block is validated, the miner receives the reward in its wallet.
It is called a coinbase transaction, but it has nothing to do with the Coinbase plateform.
Thank you for the kind words :)