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Nayeem Ahmed
Jul 16, 2022
In Welcome to the Forum
After understanding the above explanation, you can understand why Satoshi Nakamoto called the act of setting up a server to help the community keep accounts as "mining". Because in the Bitcoin blockchain, with each new block, a new Bitcoin reward miner that does not exist in the ecosystem will be generated. The act of helping the community to keep accounts is a public service provided by the blockchain, so the mining reward is not paid by any individual for the services obtained, but by the entire group for the newly generated value. Satoshi Nakamoto's bookkeeping design is to allow miners to solve a mathematical problem that takes time and computing power only through trial and error. Trial and error is like digging sand. To successfully solve a math problem is to find minerals in the sand. The time, electricity and computing photo retouching power consumed in the process are the work of miners, so this mechanism is called "Proof of Work" (PoW). Every time a block is "mined", the system will mint a certain amount of bitcoins and reward the first miner who finds the answer and gets others to confirm that the answer is correct. The whole process is very similar to physical mining. In addition to labor, miners also need to bring some luck to mine minerals, but the key is labor. The mathematical name of luck is nothing but "probability", and it will naturally equalize in the long run. Under the premise that the labor reaches a certain level, the rewards of miners should be close. The New Paradigm of Blockchain Mining: Proof of Stake The invention of Bitcoin is undoubtedly a major breakthrough for human beings to store and exchange value. However, as the first generation of decentralized ledgers available, it also has various disadvantages such as long transaction time, low capacity, and large power consumption. Therefore, the new generation of blockchains generally use improved mining mechanisms, of which the most mainstream is Proof of Stake (PoS).
Accounting With Computing Power Photo Retouching content media
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Nayeem Ahmed

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