Understanding of bitcoin mine
bitcoin mining machine is a kind of computer used to earn bitcoin. This kind of computer generally has professional mining chips and works in the way of burning graphics card, which consumes a lot of power. It is one of the ways to get bitcoin that users download software from personal computer and then run specific algorithm to get corresponding bitcoin after communicating with remote server
mining is actually a competition of performance and equipment, and a competition of computing power among miners. Miners with more computing power are more likely to dig bitcoin. With the increase of computing power in the whole network, it is more and more difficult to dig bits with traditional devices (CPU, GPU). People have developed chips specially used for mining. Chip is the core part of mining machine. The process of chip operation will proce a lot of heat, in order to cool down, bitcoin miner is generally equipped with heat sink and fan
bitcoin is a kind of virtual currency. Bitcoin mining system is the process of carrying out mathematical operation for bitcoin network through computer hardware. Miners who provide services can get a reward, because the network reward is calculated according to the tasks completed by miners, so the competition for mining is very fierce
bitcoin mining started with low-cost hardware such as CPU or GPU, but with the popularity of bitcoin, the mining process has changed greatly. Nowadays, the mining activities are transferred to the field programmable gate array, and the hash speed can be achieved through optimization. The mining efficiency of this mode is very high
Bitcoin mining is a process that uses computer hardware to calculate the location of bitcoin and obtain it
mining is an incentive process to record data in the bitcoin system. In the bitcoin system, indivial users have the right to pack blocks after calculating a specific hash value by using CPU or GPU to hash
and in order to reward this user for packing blocks, the system will give a certain amount of bitcoin as reward. Because this process is very similar to "mining" in real life, most people call this process mining. In addition to bitcoin, other electronic virtual currencies can also be obtained through mining rewards, such as Ethereum, Monroe and so on
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mining risk:
1, currency security
the withdrawal of bitcoin requires hundreds of keys, and most people will record this long string of numbers on the computer, but frequent problems such as hard disk damage will make the key permanently lost, which also leads to the loss of bitcoin
2, system risk
system risk is very common in bitcoin, and the most common one is bifurcation. Bifurcation will lead to a drop in currency price and a sharp drop in mining income. However, many cases show that the forking will benefit the miners, and the forked competitive currency also needs the miners' computing power to complete the minting and trading process. In order to win more miners, the competitive currency will provide more block rewards and handling charges to attract miners. Risk makes miners
bitcoin system is composed of users (users control the wallet through the key), transactions (transactions will be broadcast to the whole bitcoin network) and miners (a blockchain is generated by competitive computing to reach a consensus at each node, and the blockchain is a distributed public authoritative account book, including all transactions in the bitcoin network)
mining is a process of increasing bitcoin money supply. Mining also protects the security of the bitcoin system, prevents fraulent transactions, and avoids "double payment", which means spending the same bitcoin multiple times. Miners offer algorithms for bitcoin networks in exchange for the opportunity to get bitcoin rewards. The miners verify each new transaction and record it in the general ledger. Every 10 minutes, a new block will be "mined", and each block contains all the transactions from the generation of the previous block to the present, which are added to the blockchain in turn. We call the transactions included in the block and added to the blockchain "confirmed" transactions. After the transaction is "confirmed", the new owner can spend the bitcoin he gets in the transaction
there are two types of rewards for miners in the process of Mining: the new currency reward for creating a new block, and the transaction fee for the transaction contained in the block. In order to get these rewards, miners compete to complete a mathematical problem based on encrypted hash algorithm, that is, to use bitcoin mining machine to calculate the hash algorithm. This requires strong computing power, how much the calculation process is, and whether the calculation results are good or bad. As the proof of miners' calculation workload, it is called "workload proof". The competition mechanism of the algorithm and the mechanism that the winner has the right to record transactions on the blockchain ensure the security of bitcoin
miners also get transaction fees. Each transaction may contain a transaction fee, which is the difference between the input and output of each transaction. A miner who successfully "digs" a new block in the process of mining can get all the transaction "tips" contained in the block. With the decrease of mining reward and the increase of the number of transactions in each block, the proportion of transaction fee in miners' income will graally increase. After 2140, all miners' earnings will be made up of transaction fees
mining is a process of decentralizing settlement, in which each settlement verifies and settles the processed transaction. Mining protects the security of bitcoin system, and achieves the consensus of the whole bitcoin network without a central organization. The invention of mining makes bitcoin very special. This decentralized security mechanism is the basis of point-to-point e-money. The reward and transaction fee for casting new coins are a kind of incentive mechanism, which can regulate miners' behavior and network security, and at the same time complete the currency issuance of bitcoin.
the content of this article comes from: financial code of the people's Republic of China: application edition, China Law Press
the professional point is that mining is a distributed consensus system that includes the transaction data to be confirmed into the block chain, so as to complete the confirmation of these transactions. By mining, the data in the block chain can be stored in chronological order, the neutrality of bitcoin network can be maintained, and different computers on the bitcoin network are allowed to agree on the system state. To be confirmed, a transaction must be packaged into a block that complies with very strict cryptographic rules and verified through bitcoin network. These rules can prevent the modification of existing blocks, because once there is a change, all blocks will be invalid. Mining is as difficult as winning the lottery. No one can easily and continuously add new blocks to the block chain. Therefore, no one can control what content is included in the block chain or replace part of the content in the block chain to rece their cost
at present, bitcoin mining needs professional ASIC mining machines. For example, Avalon mining machine (commonly known as pumpkin Zhang mining machine), which has created countless number one mining machines in the instry, is said to be coming out soon, 28nm chips will be streamed soon, and 16nm chips are under development.
Bitcoin mining is a process of using computer hardware to do mathematical calculation for bitcoin network to confirm transactions and improve security
Tesla may support bitcoin payment, which means that there is a "man in the middle entity" processing system between consumers and terminal merchants . Consumers transfer bitcoin from their "digital wallet" to this entity, which converts it into US dollars and gives it to merchants
for example, including at & amp; Companies including T and Microsoft have accepted bitcoin payments through the cryptocurrency payment processor bitpay. Bitpay has begun to accept payments from some luxury car dealers, but has yet to work with Tesla
the transaction settlement of "man in the middle" processing system is to avoid the impact of bitcoin price volatility on businesses. Payment giant PayPal is expected to allow cryptocurrency transactions on its network by the middle of 2021, but still chooses to settle transactions through the intermediary Paxos trust company
companies like Paxos trust company issue so-called "stable currency" linked to US dollars to customers, which means that businesses and paypal do not have to hold bitcoin directly
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Tesla's innovation has two sides.
experts believe that Tesla's innovation may be that it will cancel the "middleman" in the future and create its own currency processing system, which can be used to accept bitcoin payments and carry out liquidation when necessary. In other words, consumers can directly transfer bitcoin to Tesla's system, and Tesla can choose to hold bitcoin or choose to liquidate
but it also means that Tesla needs to set guaranteed exchange rates for its customers in a very short period of time. "Tesla is likely to continue to price electric vehicles in dollars, and if consumers choose to pay for bitcoin, the price could last for five minutes," said Denny masters, chairman of coinshares
an investor who has been optimistic about Tesla for a long time told China Business News: "from the perspective of currency over issuance, musk has his own views, and Tesla's investment in bitcoin is worthy of attention."
mining is a proof mechanism.