In this video we introduce the basic concepts behind how new blocks are created in the Bitcoin blockchain.
We start by taking another look at the blockchain.info website to see some sample blocks and then to a quick screencast explaining how new, unconfirmed transactions are collected by mining nodes and included in new transaction blocks, whose header needs to be hashed along with a random number to produce an output hash meeting a set requirement.
I mention that the requirement is that the generated hash starts with a specified number of leading zeros…this is a slight (and very common) simplification, the reality is that the hash must be LESS than or equal to a specic 256 bit binary number. See here: https://youtu.be/4QxOUwG8a2Y
I introduce the concepts of difficulty targets and validation of blocks