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This is How the Crypto Coin Algorithm Works that you might be holding
1. SHA-256 Algorithm: The Foundation of Bitcoin $BTC
Bitcoin uses the **SHA-256** (Secure Hash Algorithm 256-bit) as the core of its Proof of Work (PoW) system. This algorithm is responsible for:
- **Secure transactions**: Every transaction is encrypted using SHA-256, resulting in a unique and virtually impossible to tamper with hash.
- **Mining new blocks**: Miners compete to solve mathematical puzzles by searching for valid hashes. This process requires significant computational power and high energy consumption.
**How It Works**:
- Miners collect transactions and enter them into blocks.
- They try to find a valid hash by changing the nonce value (random number).
- The first miner to find a valid hash will receive a block reward (block reward).#Has the Market Bottomed Out?