About Bitcoin mining, you have to read the hard-core knowledge

Before the rise of blockchain, the concept of "mining" was taken from existing concepts in our real economic life, such as gold mining, silver mining, etc. Minerals are valuable, so people are driven to work hard to dig. After the birth of blockchain, miners are no longer just a short name for coal miners, but have a new meaning: people engaged in virtual currency mining. So what exactly is mining? Today, I will give you a brief introduction.

What is Mining?

Simply put, mining refers to the process of calculating the next hash value through computing power. After each transaction occurs, it is not considered complete. The transaction data must be written into the database before it is considered established and the other party can actually receive the money. First, all transaction data will be transmitted to the miners, who are responsible for writing these transactions into the blockchain to complete mining and obtain income.

In depth, it is a distributed consensus system used to confirm and verify all pending transaction records and write them to the public blockchain (BlockChain). You use your mining computing resources (your CPU GPU and other hardware) to compete with other miners to obtain electronic currency. Hardware that runs faster and has better performance can often try multiple times in a short period of time, greatly increasing the chance of getting a reward.

What is a miner?

The process of generating a block and linking it to the blockchain is called mining. The person/machine/program that mines is called a miner.

First, let's understand why miners are needed to mine. In order to make every transaction reliable, blockchain technology saves every bill in every node of the network. It is open and transparent, which allows everyone to know the flow of funds, and there is no need to set up a separate regulatory department to record every transaction information.

However, this bill does not appear out of thin air, but needs to be generated, which means that miners are needed to mine. First, the user takes the token to trade, and an order is generated. When the miner gets the order information, he needs to generate legal bill information. After the generation is successful, the miner will share the transaction bill to each node, and the transaction can be considered successfully completed. The information on each legal bill includes: bill number, transaction time, transaction content, previous bill Hash, and a number.

How to mine?

Mining is ultimately a competition of computing power. The specific mining process is to calculate and match hash values ​​by running mining software. The operation of mining software requires computing power. Early miners used CPUs to mine, but as more and more people poured in, mining equipment has been upgraded. After the CPU, GPUs are used for mining, because the GPU pipeline is more focused, there are more of them, and the calculation is also very advantageous. GPUs are more efficient than CPUs and consume less computing power, so they quickly replaced CPUs.

Of course, as the level of competitive incentives evolves, single GPUs have fallen behind. You either need to build a GPU cluster (multiple GPUs form a computing system to complete corresponding mathematical problems) or join a computing pool to contribute your computing resources and cooperate with other miners to increase your chances of getting rewards (mining pool).

The evolution history of mining machines: CPU mining → GPU mining → professional mining machine mining → mining pool mining.

Mining is a project that can see real-time income every day, so it is relatively safe investment. If you can make enough money, you can mine. If you don't want to mine anymore, you can stop mining at any time or sell the mining machine to recover the cost. By the way, the depreciation rate of mining machines is very low, about 10% a year, because it is not easy to break down, and due to market demand, the selling price of second-hand mining machines is often higher than the original purchase price, so this is also a stable guarantee in mining investment.

Another point that needs to be noted is that mining requires mining machines + mining software. In addition to hardware loss during operation, the biggest consumption is electricity. Therefore, the mining (computing power) competition among miners depends to a large extent on who can obtain lower electricity costs. Whoever has an innate advantage.

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【Energy Carrier Introduction】

Zionodes was founded in 2020. The core team entered the professional field of Bitcoin mining in 2016. It has now become the world's leading Bitcoin mining machine trading platform, dedicated to providing miners with a one-stop Bitcoin mining service trading platform such as mining machine purchase and mining machine hosting. There are no hidden fees, no complicated contracts, and all costs are completely transparent.

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