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Why are all the large mining pools in China (why mining pools are needed)

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<img src='https://img.doulai.com/pic/enpic.php?k=Why are all the large mining pools in China. According to Coinmarketcap data, as of August 10, the mining difficulty of Bitcoin has been reduced to 19.31T (-1.9%), and the mining difficulty of Ethereum has decreased by 11.8%. The top 20 currencies are ETH, XRP, BCH and BSV

The reason why these calculations are concentrated in China is that China’s regulatory policies and Cryptocurrency related laws and regulations are not clear enough. So this is a difficult choice for ordinary investors to understand. Why are all the big mining pools in China? The reasons are as follows: 1. There is no unified digital asset trading platform in China; 2. Individual investors are not allowed to invest in Cryptocurrency in the Chinese market because most domestic exchanges are operated by overseas companies, but they are not friendly to retail investors. 3. Many investors in the Chinese market may not have access to foreign exchanges or wallet service providers; 4. Most Chinese users are not professional Market maker or fund management institutions, but small OTC buyers

Why do we need a mining pool for mining?

Why do we need a mining pool for mining? A mining pool is a block generated on the chain. Determine whether a block is in an effective, effective, and secure state through this system; Then the entire network will decide whether this block is accepted (if not), and this reward will be automatically distributed to the miners We know that Bitcoin’s total network computing power is 10 calculation formulas per second. But taking the current network speed of Bitcoin as an example, in a bull market, approximately 300 trillion coins flow into the exchange every day from the market, and each transaction is completed within an hour. So mining is a great way to make money because it allows users to earn more money and achieve higher returns. But for ordinary people, due to cost issues such as inability to participate in online activities or pay transaction fees, many blockchain projects require joining a mining machine manufacturer To address these challenges, in addition to improving the operational efficiency of mining machines, various complex applications can also be introduced into the mining pool, such as currency and futures applications in games. Of course, this also includes some new technological means, such as encryption algorithms, and many new gameplay are under development, such as smart contracts like DEFI or cross chain technologies Therefore, mining pools are a platform similar to traditional internet. It provides a distributed storage environment. All data here will exist at a server endpoint, and each cloud service provider has a dedicated hardware department responsible for processing data, known as the “mining pool”, which is a centralized organizational structure. Its operation is to connect various nodes together to form a database, so that data can be shared. At the same time, it also has its own incentive mechanism to enable information exchange between different types of data.

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