What is the use of Bitcoin miner name (What Bitcoin miners essentially do)

08/18/2023 01:31 • Crypto & Markets • 56 views

What is the use of Bitcoin miner name? Usually, the letters and numbers “mining” are used. If there is a security issue with a blockchain project or a specific block is discovered on the internet (such as encountering vulnerabilities or losing keys), then the code needs to be directly written onto the ledger (such as an exchange).

For a cryptocurrency, it is that simple:

First, you need to register an account; then, through password verification, you send transaction information to others; finally, you need to verify it.

What Bitcoin miners essentially do

Editor’s note: This article is from Orange Book (ID: chengpishu), author: JOSEPHYOUNG, published with permission from the Planet Daily.

Introduction: “What do miners do?” is mentioned in the Bitcoin whitepaper:

“Mining” is actually a way of bookkeeping, “We use machines to calculate these things.” This vividly describes the core value of blockchain technology. It refers to connecting the nodes in the network. “If no one is willing to believe that there are tens of thousands of blocks in a system, they do not need computing power for verification—because proof of work can ensure that everyone can reach consensus without affecting the consensus of others. Of course, some people who do not understand these rules may think that this algorithm is code.

So why do we need ASICs? I can sum up the answer in two parts:

The first part is to mine blocks instead of selling them as assets to ensure that one’s transaction records and historical data are unchangeable or traceable;

The second part is to ensure the security, efficiency, and normal operation of the network, thus requiring a large consumption of energy and hardware resources.

The third part is to solve some problems, such as how to deal with transactions and states stored in a separate data center, and how to stress test the entire network and so on… The last part is called “hashrate.”

However, when you want to create a new chain, the first thing to consider is whether the information that has already generated rewards really exists. In fact, this is impossible. If you just want to copy your script or smart contract and then send it to the server, you may get another address. This is why only miners called “cryptocurrency analysts” can receive rewards and maintain anonymity.

In fact, mining machine manufacturers have been working hard to improve the cost of electricity. For example, MicroStrategy is providing more electricity to the Bitcoin network to help meet demand for buying Bitcoin futures and other equivalent products. However, it is currently unclear how much electricity is used to support this goal.

However, according to recent research, about 65% of global electricity in 2019 came from outside of China, with China accounting for as much as 45%. Although most countries are encouraging Bitcoin mining and more and more governments are indicating that Bitcoin mining farms may increase revenue sources for the industry, many companies are shutting down their equipment due to lack of reliability and regulatory environment.

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What is the use of Bitcoin miner name (What Bitcoin miners essentially do)

What Bitcoin miners essentially do

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