What does bitcoin mining mean? Distribute the initial bitcoin


What is Bitcoin Mining?

When Bitcoin nodes are connected to each other, they will take transactions from each other that they do not have. But because of the accumulation of transactions in Bitcoin over time, it's hard for two nodes to compare which transactions you're missing

To solve this problem, Satoshi Nakamoto invented the important technology of blockchain. Nodes use blocks to synchronize transactions, ensuring the unity of all node data, and ensuring the uniqueness of blockchain by competing for block packaging rights (i.e., mining).

What is the origin of "mining" and "miner"?

Nodes require a lot of computer power and consume a lot of electricity to perform hash calculations, essentially similar to gold mining (through mining equipment, energy is spent in exchange for gold). The total amount of bitcoins is the same, but they are being produced in smaller quantities, similar to gold.

So people figuratively call the process of mining for packaging rights Bitcoin miners for packaging rights.

What is a mine pool?

Because tens of thousands of miners competed for the right to package, the probability that a single miner could win the right to package was very small, and the output was very unstable. You might be lucky to get one per hour, or you might not get one per year. In order to stabilize the output of mining, miners often choose to join the mining pool mining. The mining pool integrates the computing power of a large number of miners and occupies a certain share of the total network capacity, thus obtaining relatively stable mining earnings. After charging a 2 percent to 4 percent commission, the pool distributes production to miners based on their ability to calculate. As a person is difficult to win the lottery, so the mine pool organized a lot of people to buy a lottery ticket, and then according to the amount of investment to everyone.

Bitcoin Mining - Initial distribution of Bitcoin!

Bitcoin opponents accuse mining of wasting a lot of resources doing pointless mining, while supporters point to gold mining as an example, which also wastes a lot of resources doing pointless mining. For the Bitcoin system, the biggest significance of this resource-consuming mining is that it is like consuming resources to mine gold. Consuming resources to mine bitcoins is the only way to fairly distribute bitcoins.

Bitcoin, because its code is open source, has thousands of copycats, competitors and improvers. Generally, those that simply copy bitcoin are called altcoins, those that add some new features to bitcoin are called competitive coins, and those that add other functional modules such as smart contracts to bitcoin are called "second tokens."

But all of these initial allocation methods are far less fair than the model of burning money to get the initial Bitcoin, and fairness is at the heart of a monetary system. So Bitcoin mining consumes a lot of resources, but it makes just as much sense as mining for gold.

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