There are several mining mechanisms
In short, mining is the use of chips for a random number related calculation, get the answer in exchange for a virtual currency. Virtual currency can be exchanged for the currency of each country through some way. The stronger the computing power, the faster the chip can find this random answer. Theoretically, the more virtual coins can be proced per unit time. Because it's about random numbers, you can only get rewards if you happen to find the answer
In his paper, Nakamoto stated:"in the absence of central authority, it not only encourages miners to support bitcoin network, but also enables bitcoin's currency circulation system to have the initial source of money injection."
Nakamoto compares the generation of bitcoin by consuming CPU power and time to the consumption of resources by gold mines to inject gold into the economy. Bitcoin mining and node software mainly initiates zero knowledge proof and verification transactions through peer-to-peer network, digital signature and interactive proof system
each network node concts broadcast transactions to the network. After these broadcast transactions are verified by miners (computers on the network), miners can use their own work proof results to express their confirmation. The confirmed transactions will be packaged into data blocks, and the data blocks will form a continuous data block chain
Nakamoto himself designed the first version of bitcoin mining program, which was later developed into the first generation of widely used mining software bitcoin, which was popular from 2009 to mid-2010
each bitcoin node will collect all the unconfirmed transactions and gather them into a data block. The miner node will add a random adjustment number and calculate the SHA-256 hash value of the previous data block. The mining node tries again and again until it finds the random adjustment number so that the hash value is lower than a specific target
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at the earliest, bitcoin miners were mining through Intel or AMD CPU procts. But because mining is a computing intensive application, and with the continuous improvement of mining number and equipment performance, the difficulty graally increases, now using CPU mining has no profit or even loss
as of 2012, since the first quarter of 2013, miners graally began to use GPU or FPGA and other mining equipment [5]. At the same time, a large number of ASIC devices were launched in mid 2013
since July 2013, the computing power of the whole network has shown a straight-line rise e to the large number of ASIC equipment put into operation. Based on the average computing power in July 2013, all CPU mining equipment has been unable to generate positive revenue, and FPGA equipment is close to no revenue
according to the estimation of average computing power in September 2013, the existing small ASIC mining equipment developed for indivials will also be close to no positive revenue in the next 1-2 months. A large amount of computing power is monopolized by cluster ASIC mining equipment with 5 th ash / s or more. Because of no profit, indivial mining is almost squeezed out of mining groups. Some bitcoin miners have raised funds to build machine rooms and install a large number of mining equipment in places where low-cost electricity can be obtained
in order to save the cost of mining, some bitcoin miners make mining programs into malicious programs to infect other people's computers on the network to mine for themselves
however, at present, professional Avalon ASIC miner is needed for mining, and it also needs to be included in a mine pool. If you are a retail investor, of course, if you arrange a large mine, you don't need it.
the principle of bitcoin mining is to implement rules made by people and automatically executed by computers
Satoshi Nakamoto, the inventor of bitcoin, has stipulated this rule from the very beginning, and those who participate in bitcoin blockchain must automatically abide by it unconditionally
The content ofrules is generally ,
people who pack the circulation data of bitcoin, arrange it into a fixed size, and then upload it to the blockchain for bitcoin whole network synchronous broadcasting can get 50 bitcoins rewarded by the system
under certain conditions, these rewards will be halved, about once every four years
so how to complete the data packing
the person who wants to complete this action must first have the necessary tools, that is, the software to execute the bitcoin blockchain, and the machine (computer at the beginning) to run the software; Then download and save all the bitcoin transaction data that have been recognized by the whole network. At this time, you become a "node" and a part of protecting the blockchain data
Thenode can only get the priority of the packaged data after running a specific mathematical formula and getting the correct answer. The system will automatically give the reward to the node who gets the priority, who completes the packaging first and then uploads it to the blockchain, and receives and approves it from other nodes
if there is bitcoin service charge in the packaged transaction, the service charge belongs to the node
people think that the process of calculating the mathematical formula and then completing the package to get the reward is just like fishing for gold in the river. It is necessary to discard many wrong answers in order to find the right key to get gold, so people compare this process to mining
so bitcoin mining is not really to dig something, or to use computers to constantly collide and guess. Whoever guesses first wins the reward, that's all
the content of this article comes from: financial code of the people's Republic of China: application edition, China Law Press
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."