I am trying to understand the Blockchain algorithm used in Bitcoin.
I do not get the part how blocks are created.
With this verify-send algorithm, almost every node verifies these newly occurred transactions in few seconds.
Now, it is a time for a miner to do his job, which I do not understand.
He needs to find a nonce which makes a lower value than hash values given in transactions.
Question 1 How many transactions should a miner should verify in a single block? For example, if a miner A finds a nonce which gives a lower value than hash values given in 50 transactions, and if a miner B finds a nonce which gives a lower value than hash values given in 70 transacations, would a reward be given only to the miner B? So should a miner appropriately choose how many transacations he will work for?
How is a block created? In some webpages, it is written that if a miner finds an appropriate nonce, a block is created and a miner is rewarded. What exactly is a block? Is it correct that a block is exactly a text file of “transaction lists+ appropriate nonce value corresponding to those transactions”?
When is a miner rewarded? Is he rewarded at the time he created a block or at the time after his block is chosen to be a part of the greatest cumulative difficulty chain?
Blockchain – Crypto – Currency infomation