Does mining provide computing power for bits
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
extended data:
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
Development:
1. Bitcoin (bitcoin) is a kind of network virtual currency, which can buy real-life goods. It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used as a money laundering tool by some criminals. In 2013, the U.S. government recognized the legal status of bitcoin, making the price of bitcoin soar. In China, on November 19, 2013, a bitcoin was equivalent to 6989 yuan
2. On January 7, 2014, Taobao announced that it would ban the sale of Internet virtual currencies such as bitcoin and lightcoin from January 14. West Virginia Democratic Senator Joe; On February 26, 2014, Joe Manchin issued an open letter to a number of regulatory authorities of the US federal government, hoping that relevant institutions would pay attention to the current situation of bitcoin encouraging illegal activities and disrupting the financial order, and demanded that actions be taken as soon as possible to completely ban the electronic currency. On January 11, 2017), the Shanghai headquarters of the people's Bank of China and the Shanghai Municipal Finance Office carried out on-site inspection of bitcoin China.
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.
Although many investors know nothing about bitcoin mining, they still can't resist the temptation of bitcoin price and plan to invest in the mining army. So if you also want to mine, I believe you will have a question in your heart: "what is a bitcoin miner? What is the principle of bitcoin mining machine? " To solve this problem, let's remember some popular science today
origin of bitcoin
to fully understand the origin of bitcoin, we have to mention the existing financial system
bitcoin mining machine specially used for mining. The popular digital currencies in 2013 include bitcoin, Leyte coin, zeta coin, pennies (Internet), invisible gold bar, red coin, pole coin, BBQ coin and prime currency. At present, hundreds of digital currencies are issued all over the world
with the orderly implementation of cashless society, banknotes will inevitably disappear in the long river of history with the passage of time. The future digital currency is believed to be similar to bitcoin, but it is by no means a limited supply. But when the human ability to proce wealth can be completely matched by the computing power of the computer, the issuing speed of e-money is directly proportional to or slightly exceeds the computing speed of the computer to create moderate inflation. In the future, while mining, it is also creating value rather than wasting electricity. In the end, the small changes in proctivity of digital currency match the difficulty of computing power, which may be the final form of human currency
It's not against the law
The laws and administrative regulations in China do not prohibit the proction, holding and legal circulation of bitcoin, nor do they prohibit the sale of bitcoin mining machines2. The investment and transaction of "virtual currency" represented by bitcoin are on the rise. For this kind of virtual goods generated in the Internet environment after the development of Internet technology, there are policy and commercial risks in related transactions. However, under the premise of not violating the mandatory provisions of laws and administrative regulations, the contract signed by the parties is a valid contract
3. Bitcoin is generated by "miner" and "mining", and "miner" can be assumed by anyone in any place in the world. "Mining" is a process in which "miner" provides certain computer computing power according to the open source software provided by the designer, and obtains the special solution of the equation through complex mathematical operations, The miner who gets the special solution gets a certain amount of bitcoin reward
Because bitcoin is based on workload proof, it is related to computing power. To have computing power, we need to consume power, so its power consumption is very large. It is precisely because of such a large power consumption that the safe and stable operation of bitcoin system can be guaranteed
extended information:
according to the data of btc.com website, up to now, the computing power of the whole bitcoin network is about 51.65 eh / s, which is equivalent to 1.84 million bitcoin S15 (28T computing power, 1596w power) mining machines in operation, and the daily power consumption is about 69.92 million kwh. Divided by the current proction of 1800 bitcoins per day, excluding other costs, each bitcoin will consume 38800 kwh of electricity. "
from this point of view, although the current price of bitcoin is expensive, the cryptocurrency market website coinmarketcap.com shows that the current unit price is about $7900, but the cost of mining a bitcoin is not low at all
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bitcoin is a string of code generated by an open-source P2P software, which we call cryptocurrency, e-currency and so on. Bitcoin is proced by mining. Generally speaking, bitcoin mining is to use your hardware to calculate the mathematical problems of sh265 algorithm, confirm network transactions, and ensure the security of the whole network system. As a reward, bitcoin system will give a certain amount of bitcoin reward according to the amount of computing power contributed by miners
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mining is bitcoin. Bitcoin will be generated several times every other period of time, and whoever grabs it will own it. The computer connected to the bitcoin system is the tool "miner" for grabbing bitcoin. As for the issue of national recognition of bitcoin, simply speaking, it depends on the possible impact on the country< br />
first of all, mining is the main way to obtain bitcoin, but the current threshold of mining is relatively high. If you choose to mine by yourself, first you need to understand certain technology, then download the bitcoin client and mine by yourself according to the online bitcoin mining tutorial
however, in theory, bitcoin can still be mined with computers or graphics cards. However, e to the development of mining instry in recent years, the whole network computing power of bitcoin is extremely terrible (more than supercomputers), so if you want to mine with computers or graphics cards, you can't find bitcoin, If you want to dig bitcoin, you still need to buy mining machines. Now the better mainstream mining machines in the market have to be tens of thousands. Of course, there are cheap second-hand mining machines, but these second-hand mining machines are all obsolete ones, and the electricity cost of mining is relatively high
in addition to the second way of direct purchase, the digital currency exchange is a special place for bitcoin trading. If you want to own a bitcoin, you can buy it directly with money. However, it should be noted that there are many digital currency exchanges in the market at present. Many small exchanges are specialized in cutting users and eating customer losses for a living. Therefore, when choosing an exchange, it is better to focus on the head exchange. For example, one of the head exchanges in China (Hufu exchange), I have been using it for nearly two years, and it is very stable and safe.