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What exactly is mining (mining is digging something)

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What exactly is mining (mining is digging something)

What exactly is mining? From the above picture, we can see that the amount of coins mined by the miners is calculated based on the actual situation. For ordinary users, they only need to keep an account once to earn corresponding profits. So what exactly is mining The first step is to carry out an operational process: after you have prepared your digital currency wallet, then store it on your computer. At this point, you can send Bitcoin to your computer or run these programs through software on your phone to earn corresponding income (of course, this process does not necessarily require a lot of electricity). In this way, when you want to buy something with Bitcoin, you can first transfer Bitcoin into your favorite Cryptocurrency exchange Bitfinex and Firecoin, and then use any of the assets in these exchanges to exchange for French currency

But this kind of transaction is very complicated and time-consuming, because people who buy coins in the Wet market often encounter some problems:

1, because the cost is high and there is no way to ensure security; 2. If sufficient liquidity cannot be provided to support price increases, there may be losses. 2. If we cannot pay a high price to support selling Bitcoin at a high price and achieve profits; 3. Once unable to withstand financial pressure and even the risk of theft occurs, investors have to bear losses; 4. Large households will start using their idle tokens to participate, thus earning a certain amount of “interest”. So many people say that the return on investment is too low, but in reality, not all mining machine manufacturers will do so. After all, mining companies are also like this, and their profits come from their own businesses, such as mining pools. In fact, what they do is only create value for the market. (The above three points are all from the blockchain world Xiaocong organization)

However, most of the mining sites have already turned off their machines and are no longer operating mining equipment, so they can only continue mining Below, we will make a simple comparison of mining principles to understand what mining is What is a Bitcoin network? 2. Which currency is dug? 3. Which currencies can I earn rewards by digging

What is mining?

Bitcoin is the most important and core technology in blockchain technology.

. Since the 1980s, people’s interest in Bitcoin has been increasing, but many people have overlooked the importance of mining because they believe it is a very important field: a new asset class and a new direction for development

Now many people combine this technology with computer science to understand it in different ways – mining, Cryptocurrency or “mining”. In fact, mining is also an economic activity. In the internet world, we usually store information in a place or on a device, such as CPU resources on a computer. So mining is a process where you collect data and upload it to the internet. The working principle of “Proof of work” (PoW) is to fully release the computing power (for example, every THash can be used to verify blocks), and then this number will become 21 million BTCs, so as to achieve the purpose of bookkeeping However, with the emergence of blockchain technology and the application of various applications, they have created their own problems. Therefore, mining is no longer limited to decentralized systems such as Ethereum, but it will take longer and more hardware to put into use to solve these problems. In fact, for the majority of the general public, ‘digging’ is more important than ‘mining’. What exactly is mining? Firstly, we need to know that mining is not a game for making money, but a tool for people to earn rewards. If you want to participate, you must first understand what computing power manufacturers are. If there is no electricity bill support, then your computing power may disappear forever. Secondly, mining does not necessarily mean obtaining returns before investing, just like in traditional stock markets. On the contrary, due to low returns and low efficiency, mining is not a profitable activity. When users want to purchase a machine, mining is just like buying a laptop. Simply put, it means moving complex things online and then spending some time learning other things. Of course, as long as there is enough money to ensure the safe and reliable operation of the machine, is mining also over

Finally, mining is also called distributed cloud computing and Big data platform, which is one of the three largest emerging industries in the market at present, accounting for more than half of the world’s share. In addition to the cost of electricity, there are many advantages worth paying attention to

1. Scalability and security

According to the official definition of Bitcoin, mining is mainly divided into two types: consensus algorithms and virtual machines (including special-purpose integrated circuit chips), smart contract Codebase and security software (including special-purpose GPU and ASIC). Among them, the consensus algorithm consists of three parts: the execution protocol layer, client and backend developer nodes, transaction processing service provider nodes, and basic service provider infrastructure. Among them, the second layer is a side chain based on Bitcoin. Its design concept is that all nodes can access the data of the Bitcoin network anytime and anywhere; The third layer is the DPOS algorithm based on the proof of equity mechanism, which supports multiple public chains, such as Ethereum and Bitcoin Cash cash. The second layer is stateless sharding technology.

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