Bellscoin is built on a blockchain — a distributed ledger system that records every transaction ever made. This public ledger ensures transparency and immutability, preventing fraudulent activities. Transactions are initiated by users using digital signatures, verified by miners, and then added to the blockchain as blocks.

Network Security and Verification

Bellscoin mining is the process of verifying and adding new transactions to the blockchain. It also plays a critical role in securing the network through a computational puzzle based on the Proof of Work (PoW) algorithm using Scrypt. Unlike Bitcoin’s SHA-256, Scrypt is less energy-intensive and more accessible to a wider range of miners.

Mempool

New Bellscoin transactions are broadcast to the network by users. These transactions may include sending BEL or other operations. Similar to Bitcoin, they are temporarily stored in a distributed memory pool (mempool) accessible to all network nodes. Miners prioritize transactions with higher fees to maximize their rewards.

Block Creation

Bellscoin miners compete to gather and group unconfirmed transactions into blocks. Each block has a size limit, and transactions are selected based on priority. A "coinbase" transaction is added to each block, serving as the miner's reward for successfully creating the block.

Hashing

Hashing in Bellscoin is performed using the Scrypt algorithm. Mining input data includes the block header, the hash of the previous block, a timestamp, and the Merkle root. Miners use specialized equipment, such as ASICs, to compute billions of hashes per second. The goal is to find a hash that meets the required difficulty level, which is adjusted automatically to maintain a consistent block creation time.

Block Validation

Once a miner finds a valid hash, the block is broadcast to the network. Network nodes verify the block through the following steps:

• Recomputing the hash and checking its compliance with the difficulty requirements.

• Validating all transactions in the block.

• Ensuring the accuracy and consistency of the block header information.

If the block is deemed valid, it is added to the blockchain, and the miner receives a reward in Bellscoin. Blocks are considered fully confirmed after a number of subsequent blocks are added, making it extremely difficult to alter or tamper with previously confirmed blocks.