This article will give you a positive answer on what is Bitcoin mining

Speaking of mining, Shanxi coal bosses should be very familiar with this term. Relying on geographical advantages to mine natural resources has made a large number of mining bosses rich. But the earth is constantly moving, and feng shui also follows turns. However, you sang me on stage, and mining belonging to the new era has also created a group of rich people. In southwest China (Yungui River), Xinjiang, Inner Mongolia and other regions, there are almost all mines in China. Whoops? So the question is, what exactly is mining in this new era? What happened to the mine?_Whatsmienr

New Age Mining

The new era of mining refers to the mining of encrypted digital currencies such as Bitcoin, which are represented by blockchain technology. Here, Bitcoin mining is taken as an example to explain. A simple understanding is that the nodes on the entire network are scrambling to solve a very difficult mathematical problem. Whoever calculates this problem first will dig out a block and have a block account The new block will reward this node with a certain amount of encrypted digital currency, and the process of obtaining encrypted digital currency is "new era mining".

Feeling incomprehensible? !! For example, I have 100 yuan in my hand. I posted an event on the official website of Brock Technology. Participate in the comments. Whoever guesses the last two digits of the 100 yuan number in my hand will get the 100. Meta reward. Relying on one's intelligence, I guessed right, this is personal mining; I feel that my intelligence is not enough, call friends and friends to guess together, which is similar to the mine; after guessing the right, the 100 is allocated according to each person's intelligence Yuan, this is similar to a mining pool.

In short, mining in the new era is not really going to mine, but the process of using mining machines to compete for bookkeeping rights of new blocks on the digital currency network to obtain digital currency rewards. Mining is divided into personal mining, mines and mining pools.

Evolutionary mining mode

Why are there various mining modes such as personal mining, mines, and mining pools? Time returned to January 3, 2009, Satoshi Nakamoto dug out the first block of Bitcoin, which is the genesis block. He was awarded 50 bitcoins for the system. Early bitcoin mining required calculation of very simple mathematical problems. Individuals could easily obtain bitcoin by running a program with an old computer. At that time, people mainly used the computing power of the CPU. Satoshi Nakamoto used a computer CPU to mine the world's first Bitcoin.Whatsmienr

1. Personal mining

In the early days of bitcoin mining, you only needed a computer with an internet connection, you can start mining by downloading a bitcoin mining software, and the program can mine hundreds or thousands of bitcoins in a day. At one time, the worst programmer in history spent 10,000 bitcoins to buy two pizzas. It can be seen that Bitcoin mining was really so easy at the time. Satoshi Nakamoto formulated a set of rules at the beginning of designing Bitcoin. The computing power needs to be adjusted every time, which means that the difficulty of mining is also increasing. With the increasing difficulty of mining, CPU mining has been unable to meet the needs of miners, and then gradually entered the golden period of GPU (graphics card) mining. Around 2016, a large number of users purchased graphics cards to mine, and the price of graphics cards rose sharply, resulting in a supply shortage of one card. Later, FPGA (programmable gate array) mining began to appear, and its efficiency was higher than that of CPU and GPU.



So far, mining has been done on an individual basis. The difficulty of mining is not very large, and the equipment capital required is not large, and individuals can afford it. The iteration of mining equipment is from CPU to GPU, and then to FPGA.

2. Mine

As the computing power required for mining is getting higher and higher, the difficulty of bitcoin mining is also getting larger, and the probability that individuals can mine bitcoin is getting smaller and smaller. Later, large-scale mines were gradually developed, that is, mining the aggregate computing power of multiple miners. At this stage of bitcoin mining, due to the emergence of the first integrated circuit ASIC chip dedicated to bitcoin mining, bitcoin mining has become a large-scale project that requires a large amount of capital investment. In addition to the rising cost of mining machines, a large number of mining machines make maintenance costs very large. In the southwest of China in the summer, the electricity price is cheap, the mining cost is relatively low, and the profit margin will be greater. So there is a saying in the mining circle: 70% of the world's mining machines are in China, and 70% of China's mining machines are in Sichuan. Each mine is almost half the size of a football field, and the monthly electricity bill exceeds $ 1 million. The mine is set up by a special person to maintain the mining machine. It is more formal in scale and more systematic than individual mining.



Centralize the maintenance and management of multiple N miners, aggregate their computing power, and mine them to the mining farm. This model is no longer a single person alone, but by a large-scale team and a person in charge. This has a scale advantage over individual mining in the management system and can significantly reduce the operating and management costs of a single mining machine. At the same time, it is easier to mine Bitcoin with centralized computing power.

3.Mining Pool

If the mining field refers to the centralized mining performed by a mining machine concentrated in a certain place, the concentration here refers to the concentration of space and computing power. The mining pool does not have much space requirements. Geographically, it can be combined with mining machines or mines in different parts of the world to concentrate the computing power of these mining machines scattered in different directions. The mining revenue here is distributed according to the computing power proportion of participating mining computers. This is because the higher the computing power of the nodes participating in mining, the greater the probability of obtaining Bitcoin. The advantage of this kind of mining is to break through the limitation of the original geographic location, and it is fair to distribute Bitcoin according to the size of the computing power, which makes up for the shortcomings of insufficient computing power of individuals or small computing power mines.

Summary of knowledge points

1. Mining is divided into three types: personal mining, mine and mining pool;
2.In the early days of bitcoin mining, only a computer with an Internet connection was needed, which could mine hundreds or thousands of bitcoins a day;

3. Individual mining equipment iterates from CPU to GPU to FPGA, and it can be seen that the computing power required for mining is getting higher and higher;

4. As the computing power required for mining is getting higher and higher, mining has changed from individual mining to mines or pools;

5. Mining in the new era: The nodes on the entire network scramble to calculate a math problem to obtain the right to book new blocks. The system will reward him with a certain amount of digital currency.Whatsmienr