Why does blockchain have mining machines (Is blockchain a scam)?

08/15/2023 13:09 • AI & Tech Insights • 52 views

Why does blockchain have mining machines? The principle of mining machines is to convert work into energy consumption. For example, if you want to package your coins into a block and use this fund to purchase a computer to run these nodes, or you can use your own money to buy some other cryptocurrencies. Bitcoin is also the same, but because Bitcoin is a peer-to-peer electronic cash system, it is also called “digital gold”. If we consider Bitcoin as a commodity on the Internet, then blockchain is actually a process of value storage. So the blockchain process is equivalent to a kind of accounting method, and anyone who knows their participation will carry out transactions, operations, and other behaviors. This is called consensus algorithm and distributed network.

What do we need to consider when calculating? It is how to make the data more reliable, so as to ensure the correctness of our calculation results. In order to ensure that we can get confirmation faster, we must first start the calculation from a set of random numbers. Each block needs to contain at least 1 million data (currently about 10 ms), which means 20,000 bytes of data per second, and also derive different hash values based on time periods. This leads to a problem: because the size of the entire blockchain system is fixed and cannot control all the information.

For ordinary users, it is difficult to obtain a large amount of information and generate income, and in most cases, it also relies on various software to implement their own business logic and other related processes. The reason why blockchain has such functionality is because it is based on a new technological concept, which is a branch of blockchain called chain.

Ethereum is a good example. After its code became open source, it can be infinitely replicated. Now it has smart contracts, but it cannot be updated and can only be solved by programming, which is the simplest way.

Although blockchain is essentially a set of protocols rather than standalone applications, it is very cumbersome to use in practice, especially when it comes to security issues. Many project parties do not use blockchain applications at all, and they may not be able to truly utilize the existing network system and platform. Only those who are willing to make efforts will believe in it and even consider blockchain as a great progress or breakthrough, just don’t know how to understand it.

In addition, there is another popular type of mining machine, this type of company generally chooses to produce a new machine specifically designed for mining virtual digital assets, making them more convenient, fast, relatively low-cost, and competitive compared to traditional computers. For example, TSMC’s T3 has the world’s first ASIC chip, and Antminer S9 is the company that first launched this product.

Why is blockchain a scam

According to cryptoglobe news, there is a phenomenon in the blockchain industry called “scam”, which means that there is not enough evidence to prove its value. It refers to the new form of investment or speculative transactions created by using certain technologies to create new financial models, which in some cases are even assumed, but actually have no practical meaning – although people do see the huge potential of this field and believe in the utility of this technology.

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Why does blockchain have mining machines (Is blockchain a scam)?

Why is blockchain a scam

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