Why does Bitcoin need a mining machine

Why Bitcoin needs mining? Mining was a very important concept in the blockchain industry at the beginning of Bitcoin’s birth. With more and more people’s understanding of Cryptocurrency, mining is also one of the important contents Why is Bitcoin mining? So, what exactly is Bitcoin? What does mining mean? Why is Bitcoin mining? Why is Bitcoin mining? Today we will share with everyone: Why does Bitcoin need to mine! 1、 The development history of Bitcoin (originating from the internet) 1. The development history of Bitcoin (originating from the internet)

2. The development history of Bitcoin (originating from the internet)

3. The economic model of Bitcoin (from 2009 to 2010), with a difference of no more than 100 times. At present, the hottest thing in this period is Ethereum network, and Ethereum is the first project in this ecology – Bitcoin Cash

IV. Bitcoin development process (from foreign media), The US government has released the first list of companies related to the public issuance of virtual assets. During the period from the end of 2017 to the first quarter of 2019, the United States passed a revised draft of the Federal Securities Act, which includes new regulations requiring all listed companies to disclose their holdings of digital assets and registered trading information. After 2018, the SEC began its investigation again, but did not find any evidence to indicate that the business activities of such companies comply with the jurisdiction of securities laws. Therefore, it did not clearly indicate whether these companies or entities have violated securities laws and regulations, nor did it provide formal indictments or other regulatory recommendations. In the first three quarters of 2019, a total of 22 institutions worldwide released a document on investing in Bitcoin, and at least 20 major investors have been identified to participate in the investment, most of which are concentrated in the traditional financial field, such as well-known companies such as PayPal and Square. However, due to the current market value of Bitcoin being less than $1 billion and the rise in coin prices, many funds have entered the market. So although there are many mainstream funds entering now, for the general public, they still need to pay attention to risks In addition, some people believe that Bitcoin mining will bring huge benefits, such as the recent halving of Bitcoin and the reduction of block rewards by more than half, which has reduced the block size by about 1MB and greatly reduced the difficulty of mining; At the same time, according to changes in computing power, major adjustments will occur every once in a while, and an increase in the total computing power of the entire network will also lead to an increase in mining costs. Of course, if mining efficiency is low, why does Bitcoin require a mining machine How does a Bitcoin mining machine work? In the past few years, there have been many discussions and application scenarios about mining machines on the Bitcoin network. But these activities have not been widely popularized. Although there are currently a large number of ASIC devices in the market that can be explored, some people believe that this may only be the beginning; There are many other factors that need to be considered, such as Bitcoin block size, Proof of work and encryption algorithm. So, why use this new computer technology to mine this digital currency? Let’s take a look together. What is the principle of Bitcoin mining machines? Due to the fact that most people’s computers are hard drives rather than graphics controllers, what we are referring to today as’ mining ‘is actually a very important concept

The principle of Bitcoin mining machine is as follows:

The first method is to implement transactions based on hardware, and then package them into a separate Proof of work chain. Therefore, in order to ensure the integrity of data stored in the blockchain and achieve security, it is necessary to protect the security of data through dedicated integrated circuit chips without any software development or maintenance costs The second option is to use a technology called SGX (Schnorr signature). This design allows each node to create its own address by hashing certain specific inputs/outputs. If there is not enough computing power to support it, all participants in the validation will be punished. When you run a command, the attack will immediately occur; If the operation is not completed in a timely manner, it cannot continue. This is the typical 51% attack mode For users who already have smartphones, they usually prefer to use GPUs. For example, you can purchase a laptop or a mobile TV to ensure their computing power The third point is that with the development of Bitcoin networks, it has become increasingly popular. Fundamentally speaking, ‘mining’ is not necessarily a good solution, but another solution In addition to Bitcoin’s PoW consensus mechanism, there are also two issues – the problem of excessive network bandwidth and increased difficulty in mining. 2. “Performance and efficiency of Bitcoin mining machines” Firstly, the total rewards generated during the mining process will not decrease. In addition, miners have to bear corresponding costs when creating new blocks. That is to say, even if users want to rebuild new blocks, it is not realistic because the extracted new currency may cause significant fluctuations in its value Secondly, the cost in the mining pool is also relatively high, and the cost in the mining pool is even higher – which means that miners must pay high prices to obtain profits.