What is a computing power machine (what does computing power refer to)?
What is a computing power machine? It is a specialized hardware device designed
What is a computing power machine? It is a specialized hardware device designed specifically for miners, just like other hardware devices. The difficulty of Bitcoin mining is related to the size of computing power in the Bitcoin network. In January 2017, the price of Bitcoin once reached nearly $20,000, and then it continued to rise and fluctuate significantly. Now the price of Bitcoin has exceeded $62,000 and continues to rise, reaching a historical high of over $36,000 on May 12th last year.
However, recently, due to the sharp decline in the price of Bitcoin in the past few quarters, the problem of reduced mining revenue and declining performance of ASIC mining chips has become more prominent. This has led many investors to turn their attention to computing power machines. So, for ordinary users, how to choose and purchase them? Currently, there are several popular solutions on the market to address these problems: ASIC (Application-Specific Integrated Circuit), GPU (Graphics Processing Unit), and other innovative products. For example, Ethereum’s mining algorithm Ethash (variable hash rate). By using these methods, users can mine different types of cryptocurrencies according to their needs. But in reality, from the perspective of mainstream products on the market, ASIC is still considered a “niche” area. For example, MimbleWimb (an computing power computer under Bitmain, a mining software based on ASIC technology) developed by MicroBT is a typical example. This system realizes the overall computing power generated by the transactions of virtual digital assets such as Bitcoin through smart contracts. This method can effectively reduce wear and tear during the mining process and save electricity. In addition, in order to attract more people to participate in this market, they need to use ASIC as the basic raw material to manufacture mining machines or apply them to various industrial projects and obtain a certain level of investment. Therefore, ASIC mining machines are currently the most popular in the market.
What does computing power refer to?
Computing power refers to the measure of the efficiency and energy consumption of a blockchain network. It calculates the speed, hash value, and block size of data through mathematical algorithms to determine its final effectiveness (i.e., mining success rate). When a transaction occurs within a certain period of time, it generates value information or states on the “chain,” thereby determining whether the entire system has sufficient operational capacity and consensus to achieve the goal of confirming the transaction.
In a sense, “computing power” (proof of key) refers to the total amount of data storage resources possessed by a specific computer device, which can be understood as the information required for the node to mine data or provide services according to its tasks. For example, CPU/GPU and other hardware devices require a large amount of electricity to bring them into this system, which means that these devices need to receive corresponding rewards. If the price of this digital currency drops by half or even more, normal economic activities cannot be maintained.
Bitcoin has produced over 21 million encrypted assets in total, making it the largest Bitcoin market value in the world and one of the world’s fourth largest encrypted digital assets, accounting for only 1% of the issuance of Litecoin in China. However, besides Bitcoin, there are many other noteworthy aspects of other cryptographic tokens. For example, Ethereum, Cardano, etc., some of these projects are researching how to use this technology to improve performance while reducing energy costs. (Decrypt)
Note: The author of this article is Michael Wu, a core developer of Ethereum. He proposed the Ethereum Classic EIP-1559 proposal in 2017.
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