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README.md
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README.md
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# bitcoin-mining-simulation
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# Bitcoin Mining Simulation
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This project is a simple Python simulation of Bitcoin mining. It demonstrates the core concepts of blockchain mining, such as generating transactions, calculating hashes, and solving proof-of-work problems by finding a valid nonce.
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## Overview
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This project is a simple Python simulation of Bitcoin mining. It demonstrates the core concepts of blockchain mining, such as generating transactions, calculating hashes, and solving proof-of-work problems by finding a valid nonce.
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## Features
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- Random transaction generation.
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- SHA-256 hashing of block data.
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- Proof-of-work implementation with adjustable difficulty.
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- Simulation of blockchain block creation.
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## Requirements
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- Python 3.6+
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## Installation
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1. Clone the repository or download the source code:
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```bash
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git clone <repository-url>
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```
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## Usage
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1. Run the script:
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```bash
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python main.py
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```
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2. The program will generate random transactions, mine blocks, and display the resulting hashes.
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### Example Output
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```
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Mining Block 1 with Transactions: 12345->67890->50; 54321->09876->30; 11111->22222->20
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Block found! Nonce: 45678, Hash: 00000f9d6c24...
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New Hash: 00000f9d6c24...
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```
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## Configuration
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The script contains configurable constants to adjust the mining simulation:
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- `MAX_NONCE`: Limits the number of nonce iterations for mining. Default is `1,000,000`.
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- `DIFFICULTY`: Specifies the number of leading zeros required in the hash. Default is `6`.
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To modify these values, edit the script directly:
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```python
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MAX_NONCE = 1000000 # Set a higher or lower limit as needed
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DIFFICULTY = 6 # Adjust difficulty for faster or slower mining
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```
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## Project Structure
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- `mining_simulation.py`: Main script containing all functionality for the simulation.
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## How It Works
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1. **Transaction Generation**: Random transactions are created with a sender, receiver, and amount of bitcoins.
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2. **Hash Calculation**: Each block is hashed using SHA-256.
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3. **Proof-of-Work**: The script iterates through possible nonce values to find a hash matching the difficulty.
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4. **Blockchain Simulation**: Each block references the previous block's hash, forming a simple blockchain.
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## Limitations
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- This is a simplified simulation and does not represent the full complexity of real-world Bitcoin mining.
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- The script is single-threaded and not optimized for performance.
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## License
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This project is licensed under the MIT License. See the LICENSE file for details.
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## Contributions
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Contributions are welcome! Feel free to fork the repository and submit pull requests.
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## Contact
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For questions or suggestions, please reach out to [your email or GitHub profile].
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