In this rapid development of the information change era, people’s novelty is always short-lived, like a flash in the pan. In 2018, blockchain has unknowingly gone down the street overnight as the most frequently discussed buzzword on people’s lips. With the recent war between Russia and Ukraine quietly raging, Michael Saylor, CEO of Microstrategy, believes that the war will cause inflation and weaken business activity. According to him, this makes Bitcoin attractive because it can serve as an alternative to hedging against said inflation. People are joining the “mining” army with BTC, ETC, and other digital currencies coming into the limelight and the term “mining” catching fire.
A global knowledge contest?
Bitcoin mining is not the same as the common mining concept. You don’t have to carry the tools outside, and you can start working at home using your computer or mining equipment.
To understand Bitcoin mining, we can compare it to a global knowledge competition, where the teacher gives the questions, the students answer them, and the fastest and correct answer gets some reward.
Under the Bitcoin mining mechanism, the mining machine is equivalent to the brain, while the speed of mining depends on the speed of the brain’s calculation process, i.e., the computing power of the mining machine itself.
The miner who calculates the correct answer the fastest will be rewarded with a block, which is the fastest correct answer. There is also a transaction fee, which is the cost of paper and pens. However, no one specifies how much the miner fee is. The exact amount is calculated by the market and the number of bytes occupied by the transaction. The higher the miner fee bid, the faster the transaction will be processed.
What is a miner?
If you want to become a miner, it is effortless to buy a particular computing device (commonly known as a mining machine), download the mining software, and start mining. Mining does not require the miner’s hands. The computer is performing the specific operations, for the miner only needs to ensure the mining machine power supply and network connection.
How does Bitcoin mining work?
So, what specific questions do you need to solve in this knowledge contest? This starts with an introduction to the components of a Bitcoin block. A Bitcoin block consists of two main parts: the block header and the block body.
The block header contains information such as version information, the parent block header hash, the hash of the Merkle tree root in that block, a timestamp, a difficulty target, and a random number of 6 fields. The block body is used to load all the transactions packed in that block.
For mining, the 6 fields in the block header are collected to receive a Bitcoin reward, including a reward for creating a new block and a transaction fee for the transactions contained in that block. And of the 6 fields in the block header, all 5 are easy to obtain, except for the random number, which requires constant trial and error to find.
The version information is used to track the version number of the software upgrade and can be obtained automatically from the software information.
The hash value of the parent block header, which is the previous block’s hash value, is determined after the parent block is mined. You can think of the hash value simply as the DNA of a piece of data or a file, and whenever the big data changes, even a small change, its hash value will change and be used to determine whether two files are identical.
When a block packed with transactions is determined, the hash value of the Merkle tree root in that block is used to ensure that it is accepted from other nodes, the data block is not corrupted and has not been replaced, or even to check that other nodes do not spoof or publish false blocks, is determined.
The timestamp refers to the approximate time when the block was generated and can be recorded automatically. The difficulty target of the workload proof algorithm for that block is, again, given by the system.
So, what is the appropriate random number? A suitable random number is found if the hash value of the 6 fields in the block header is less than or equal to the difficulty target value given by the system.
The miner goes through trial and error until a suitable random number is found and a new block is mined and rewarded with the corresponding block bonus and transaction fee.This is the process of Bitcoin mining.
“Bitcoin mining will become an asset strategy for many countries in the future, and those who oppose it will only sacrifice their own prosperity by reducing innovation as well as job and wealth creation,” RSK’s Adrian Eidelman has said.
Whatever happens, cryptocurrencies and mining will likely be front and center in the coming months, and BTCmining will be the hottest hotspot of the next decade, not only in the great energy debate, but also in the social and political debate over people’s right to a self-sovereign cryptocurrency. Of course, we are very hopeful that the industry will embrace a bright future.
As an independent blockchain infrastructure platform, ORIGIN Storage leverages its industry-leading expertise to provide customers with secure, easy-to-use and efficient solutions that meet a wide range of development needs, from the installation of distributed storage equipment to staking, scaling and deployment of nodes. We’ve also been working on a BTC mine here recently, so look out for our latest developments!
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