Introduction to blockchain | Is liquidation the same as “mining”? Among the 6 common types of mining, which ones are unreliable?

Recently, a platform launched the "mining after liquidation" feature, which means that you can get tokens after playing the contract. I was shocked when I saw this message. Mining, for those who have entered this industry, they all know something about it. Today, I will briefly introduce to you the types of mining currently derived.

The concept of mining in the blockchain industry originated from Bitcoin. Due to its PoW consensus mechanism, Bitcoin produces a block (token reward and handling fee) every 10 minutes. To obtain Bitcoin, one can only use the mining algorithm SHA-256 to calculate the qualified results and package the blocks to obtain Bitcoin.

The computing power is a quantitative indicator to measure the speed of your (mining machine) calculation. The higher the computing power, the greater the possibility of obtaining Bitcoin. At present, there are many tokens related to computing power mining. Although the algorithms may be different, the principles are similar to Bitcoin.

2. Transaction Mining

Transaction mining is a concept that has been popular since 2018. A large number of media in the industry believe that transaction mining will become a blockchain revolution and it was all the rage for a while, but unfortunately it is now almost gone.

Transaction mining refers to the release of a portion of the platform's tokens every day, and the number of these tokens is allocated according to the transaction volume of each user. Since transaction mining is profitable, it artificially increases the liquidity of trading pairs within the platform, but the continuous release of platform coins and the rise in prices eventually led to a rapid collapse in prices. Currently, there are very few platforms that use this strategy of transaction mining.

3. PoS Mining

PoS (Proof of Stake) mining imitates PoW computing power mining. Coin holders can pledge tokens (equivalent to computing power in computing power mining) to validator nodes (mostly wallets or trading platforms ) to obtain node reward dividends.

Different tokens may have completely different benefits due to their different mechanisms. However, the higher the benefits, the better. The value of the token must also be considered, because after the token is pledged, it takes more than ten days to unlock it (in order to reduce the circulation of the token). You must know that in this industry, the fluctuation of the token price in one day may offset your staking mining rewards. Therefore, you must be cautious when deciding to do staking, and choose the tokens you are very optimistic about before doing staking, otherwise it may not be worth the loss.

Mobile mining is also a concept that became popular in 2018. It refers to improving your computing power (mining ability) by completing small tasks (even submitting personal information). The higher the computing power, the higher the probability of mining tokens. At present, most of these projects are unreliable. Their essence is more like "signing in" to get tokens. By "signing in" every day, you can get different numbers of tokens according to your computing power (unfortunately, most of them are worthless).

5. Storage Mining

Storage mining is a new mining method proposed under the PoW sharing mechanism when the mining cost is too high . It can use the storage space of the hard disk to mine and obtain tokens. At present, there are relatively few projects related to hard disk mining, and the computing power of some projects is not only affected by the size of the hard disk storage space, but also by other factors such as time.

The essence of mining is to obtain tokens through some means . From this perspective, the liquidation mentioned at the beginning, that is, mining, can indeed be regarded as an alternative form of mining. However, there is a high probability of loss, and the money lost from the liquidation may not be as much as the tokens obtained from mining.

The type of mining has a lot to do with the consensus mechanism designed by its token. Currently, the main mining methods in the industry are PoW mining and PoS mining.

6. Leave a message to mine

In order to enhance the learning enthusiasm of readers of the public account, Plain Language Blockchain has added a message mining activity at the end of the daily headlines. There is always a teacher among three people. Plain Language Blockchain encourages everyone to express their own cognition while learning more from the cognition of others.

What other alternative mining methods have you heard of? Feel free to share your views in the comments section.

Author | day by day

Produced by | Vernacular Blockchain (ID: hellobtc)

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