What is BTC mining?

D you know BTC Mining? Bitcoin is the first application on the bitcoin network and the first application in the blockchain industry. Bitcoin network was born in 2009 and is the first killer application spawned by blockchain technology. Bitcoin network is a payment system.

What is a payment system? For example, the banking system is a payment system, Alipay is a payment system, and the bitcoin network is also a payment system. It is the first blockchain. The technology-based payment system can realize the basic functions of the banking system and Alipay system. Like the banking system and Alipay system, as a payment system, the bitcoin network can be divided into three parts. First, in the payment system, users will have their own account numbers. In the banking system, users will have their own bank card numbers. 

A public key address in the system is an account. This address has a matching password, which is called a private key. Secondly, in the payment system, users can store and transfer assets based on their own account. This function is available in the banking system, Alipay system and bitcoin system. RMB assets are stored and transferred in the banking system and Alipay system, Bitcoin assets are stored and transferred in the bitcoin network. Finally, there will be a settlement system in the payment system. To settle daily transactions. For example, in the banking system, the bank head office and UnionPay are like giant computers behind the bank, clearing the transactions of the day. For example, if I use my bank card to pay 5000 yuan to a friend, the settlement system will deduct 5000 yuan from my account, add 5000 yuan to the friend’s account, and ensure that the two operations take effect at the same time.
The banking system and Alipay system are settled and bookkept by a central computer. These are typical centralized systems, but bitcoin is different from them. There is no such a huge computer in bitcoin, but a large group of small computers work together to settle the payment transactions in the whole network. Each such small computer is a mining machine, which relies on groups of small computers rather than a giant computer for clearing, so the clearing efficiency of the bitcoin system is relatively low.

The reason for choosing such a mechanism is that bitcoin pursues decentralization. In the bank network or Alipay network, if one day this huge computer hangs up. Their respective networks will be paralyzed. However, in the bitcoin network, the failure of a small computer will not affect the stability of the bitcoin network. At present, there are about millions of small computers Mining in the bitcoin network, that is, millions of miners, performing liquidation work for the entire network. How to coordinate these millions of absenteeism and integrate them into a force is a sophisticated and complex coordination work, This coordination mechanism is consensus, and the algorithm is well known. The consensus algorithm of bitcoin is called pow. Nakamoto is very smart. He uses a complex mathematical algorithm to transform the clearing work into a lottery guessing activity. Every ten minutes, he gives a difficult question to millions of miners. At the same time, the process of miners’ guessing just helps the whole system complete the clearing work. This guessing system is very fair. Miners can only guess the answer randomly. As for why the miners are willing to guess puzzles, it is because the lucky one who guesses correctly can get 6.25 bitcoins. Due to the rich prizes, the miners began to improve their guessing speed. Originally, they could guess ten times a second. Later, they could guess 10000 times a second with more advanced equipment. This is the improvement of computing power.

 

 

Our Reputation is Your Guarantee!

Other websites with similar names may try to confuse you to think we are the same. Shenzhen Apexto Electronic Co., Ltd has been in the Blockchain mining business for more than seven years. For the last 12 years, Apexto has been a Gold Supplier. We have all kinds of ASIC miners and GPU cards on sale, including Bitmain Antminer, WhatsMiner, Avalon, Innosilicon, Ebit, StrongU, PandaMiner, iBeLink, Goldshell, and others.

Contact details

[email protected]

Company website

www.apextomining.com

Telegram

Join us: https://t.me/apextomining

 

 

Liked this article? Share it with others: