Ever since many people have learned that Bitcoin is very valuable and was dug out through mining, their hearts have been restless.
However, many people are confused about what Bitcoin mining is and why some people call themselves Bitcoin miners.
Today, let’s take a look at what Bitcoin miners and Bitcoin mining are all about.
What is Bitcoin “mining”?
In fact, Bitcoin mining is a vivid statement.
People often refer to Bitcoin as “digital gold” because the total amount of Bitcoin is as limited as gold, and it is expensive.
Gold is dug out from gold mines, and Bitcoin is dug out from numbers. Hearing this, I’m a little confused, right? Don’t worry, let’s see below.
As we already know, bitcoin has no centralized issuing institution, but is jointly issued by miners of the whole network through mining competition.
“Mining” and “miner” here are different from those in our daily life. In daily life, “mining” refers to the process of mining natural minerals such as gold and coal, and “miner” naturally refers to the miners.
The “mining” in the Bitcoin world is Bitcoin, so “mining” refers to mining Bitcoin, and “miner” refers to people who use mining equipment (Bitcoin mining machine) to participate in mining Bitcoin.
How to mine bitcoin?
Everyone must remember: Bitcoin does not have a centralized issuing agency, so how is Bitcoin issued?
In order to ensure that Bitcoin can be issued smoothly without issuing subject, the founder of Bitcoin, Nakamoto Nakamoto, has set up a reward mechanism for the issuance of Bitcoin.
The reward mechanism is as follows:
Bitcoin is billed every 10 minutes or so, recording the transfers on the Bitcoin network. Every time you keep an account, you will get the system’s Bitcoin reward. There are many miners who keep accounts, who should be rewarded?
In order to be fair, it is required that before each accounting, all the miners participating in the competition for accounting rights should first solve a difficult problem given by the system. Whoever finds the correct answer to the puzzle first will get the right to keep accounts this time and will also get the corresponding Bitcoin reward.
The process of finding answers to difficult problems is called “mining”.
This process is like a kindergarten teacher giving out candy: every time the teacher asks an arithmetic question, whoever calculates the correct answer fastest, the teacher will give the candy to him; after one round of answering the question, continue to the next round.
Of course, you can also understand this:
n bitcoin system, every time we get the right of bookkeeping, we need to solve the corresponding problems. This problem is like a password lock to open, and the key to unlock is a random number. The first person who finds the correct number will get the right to book this account and the corresponding bitcoin reward (this reward includes: the system’s block out reward and the transfer user’s handling fee reward).
The process of finding the correct number is like “mining”, and getting bitcoin rewards is like mining gold.
Therefore, the process of finding the right number is called mining, and bitcoin is called “digital gold”.
In order to ensure that Bitcoin can be issued smoothly without the issuer, the founder Satoshi Nakamoto designed the distribution of Bitcoin as a bookkeeping reward for Bitcoin miners: every time the bookkeeping rights are reserved by all miners through competition for mining products Health, whoever finds the right solution first will be rewarded.
This process of finding a correct solution is called “mining”; people who participate in “mining” are called “miners”.