What does mining prove (what does mining need to do)

08/16/2023 14:43 • Digital Disruptors • 54 views

What does mining prove? Editor’s note: This article is from the Fenghuolun community (ID: FHBT18), authored by Peipei, authorized to be reprinted by Odaily Star Daily.

Hello everyone, I am Peipei. The difference between today’s content and previous articles is:

What does mining prove?

1. The purpose of mining is not to solve a problem in a single way.

2. The Bitcoin network can theoretically be called a “decentralized” blockchain system, and Bitcoin, as a new digital asset, is primarily used for transaction settlement or value storage.

3. “Decentralization” and other technologies are actually a consensus mechanism, which gives cryptocurrencies stronger credibility and trust in the real world, and provides better investment decision-making bases for people, thereby enabling the entire ecosystem to operate. Therefore, the Ethereum project needs to ensure its own security and stability through a series of technical means, so as to achieve a more fair and efficient use and operating environment, and also allow the general public to participate in the chain reform. (Image Source: https://ethereum.org/token-proof)

What does mining need to do

What does mining need to do?

In the world of cryptocurrency, mining is a very complex process. First, the machines need to be checked and tested, and how to connect the devices to the system needs to be understood, and then this process is completed through a computer. Secondly, it is necessary to analyze the operation of the network, whether hardware or software should be used to store data, and other information. These are some decisions made from the perspective of basic technology. All of this depends on the level and professionalism of the participants, so there needs to be corresponding knowledge.

If you want to become a blockchain developer or a digital asset trading platform, you need to learn about the working principle of Bitcoin. If you want to engage in digital currency investment, you need to master relevant skills and have financial reserves. When we start to consider purchasing ASIC chips, your financial situation is very important. Because now there are many new currencies entering the market (including BTC). However, due to the lack of liquidity in the current market for many altcoins, investors find it difficult to afford those coins that can make a big profit.

Of course, most people don’t care about the price, let alone money. In addition to investing some costs, they must also have enough time to study various projects, design models, and other details to ensure their success. In addition, determine which factors will affect our choices, such as whether there is a suitable wallet; even if there is only a small team willing to use it to support their business development, and so on.

In fact, mining is a process of providing services to a specific application, and it can use computing power to obtain rewards. For example, you can deposit your computing resources into a hosting account, and set different fees according to the return rate they provide, and you can also pay service fees to third parties. (Note: This method is also called “electrician”), that is, users can install mining nodes and maintain mining machines in the cloud by accessing cloud servers.)

With the development of the mining industry, more and more traditional financial institutions have begun to lay out Bitcoin mining. In recent weeks, there have been a large number of news reports and websites related to Bitcoin mining. According to incomplete statistics, there are currently about 500 large exchanges that have announced that they accept Bitcoin as a mining method. However, for ordinary investors, due to the lack of regulation risks and the lack of protection by local laws and regulations in the field of cryptocurrency itself, many investors may be attracted to this emerging industry. Therefore, in order to avoid similar problems, many companies have launched Bitcoin mining.

On the other hand, some companies have also launched Bitcoin mining solutions. For example, MicroStrategy CEO Michael Saylor once stated, “Bitcoin is not gold”.

However, many industry insiders believe that this is a catastrophic baptism, which may be related to the global macroeconomic situation.

Currently, countries around the world are accelerating the process of issuing central bank digital currencies. Although China is still in the exploration stage, it is difficult to make progress domestically.

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What does mining prove (what does mining need to do)

What does mining need to do

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