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What does Bitcoin mining mean? Those who know something about Bitcoin will often hear the word "mining". "Mining" is the way Bitcoin is generated. What is the specific principle of its generation? Today we will find out.

The role of the traditional Internet is to realize the free circulation of information, while blockchain systems such as Bitcoin are to realize the free circulation of value. Virtual currencies such as Bitcoin are similar to the U.S. dollar, RMB, etc. in reality. They serve as general equivalents in order to allow the free circulation of assets on the blockchain system.

How is Bitcoin mined?

I believe everyone still remembers: Bitcoin does not have a centralized issuing agency, so how is Bitcoin issued?

The so-called "mining" is to collect and confirm the transaction data that has not been confirmed by the network in the past period of time, and then package it into a block of transaction record information that cannot be tampered with, thereby completing a transaction record recognized by the network and permanently saving the record. .

In the network, a data block is recorded approximately every 10 minutes. This data block contains all transaction data in the past 10 minutes. Since each node wants to package and confirm this data block, there is a competition for who will package it in the end. . Those who finally confirm the packaged data block will receive additional virtual currency rewards. These rewards are newly generated Bitcoins. This is the issuance process of Bitcoin.

Mining is a figurative name because Bitcoin rewards are generated during the process. Its real name is PoW (proof of
work), that is, proof of work. This is an economic concept, it is a strategy to prevent the misuse of services or resources. The proof-of-work system can be seen as two steps, one is the work and the other is the verification of the work.

The number of Bitcoins is limited. According to the Bitcoin supply mechanism, the number of Bitcoins that each person can mine is proportional to the proportion of the computing power of his mining equipment to the total computing power of the entire Bitcoin network. In the early days when there were fewer participants, mining was very simple. With the development of Bitcoin, the competition for mining equipment has intensified, and it has become increasingly difficult to mine Bitcoin.

According to the design of the Bitcoin system, a block of transaction records can be produced every 10 minutes. Initially, there will be a reward of 50 Bitcoins for each transaction record block produced, so 7,200 Bitcoins will be generated initially every day, but the rewards will be halved every 4 years, and there will only be 21 million in the system until mining Rewards completed.

The consensus mechanism of Bitcoin PoW also has certain shortcomings, such as low network performance, long block consensus confirmation time, and very slow transaction speed. In addition, the competition among many mining machines leads to a large waste of resources such as electricity.

In order to ensure that Bitcoin can be issued smoothly without an issuing entity, the founder of Bitcoin, Satoshi Nakamoto, established a reward mechanism for the issuance of Bitcoin; this reward mechanism is as follows: Bitcoin is accounted for every 10 minutes or so. Record transfers on the Bitcoin network. Every time you record an account, you will be rewarded with Bitcoins from the system. There are many miners who keep accounts, so who should be rewarded? For the sake of fairness, all miners competing for accounting rights are required to solve a difficult problem given by the system before each accounting. Whoever finds the correct answer to the puzzle first will get the accounting rights this time and will also receive the corresponding Bitcoin reward.

Looking for answers to difficult problems, this process is called "mining"; the mining machine used for "mining", this process is like a kindergarten teacher handing out candy: every time the teacher asks an arithmetic problem, whoever can calculate the correct answer fastest will be the teacher. Just give the candy to whoever you want; after one round of answering questions, continue to the next round.

Of course, you can also understand that in the Bitcoin system, every time you obtain accounting rights, you need to solve the corresponding problems. This puzzle is like a combination lock that needs to be unlocked, and the key to unlock it is a random number. The first person to find the correct number will get the right to record this time and the corresponding Bitcoin reward (this reward includes: the system's block reward and the transfer user's fee reward).

The process of finding the correct number is like "mining", and getting a Bitcoin reward is like mining for gold; therefore, the process of people finding the correct number is called mining, and Bitcoin is called "digital gold."

In order to ensure that Bitcoin can be issued smoothly without an issuing entity, founder Satoshi Nakamoto designed the distribution of Bitcoin as an accounting reward for Bitcoin miners: every accounting right is awarded to all miners through competition to mine minerals. Students, whoever finds the correct solution first will be rewarded.

Therefore, public chains represented by TRON currently adopt the consensus mechanism of DPoS (Proxy Proof of Stake). This mechanism is that every currency holder has the right to vote for agent nodes, and the node with the most votes in the end will assume the responsibility of generating new blocks. Currently, Tron has 27 super nodes, which greatly reduces the time required for block creation and During the confirmation time, the transaction speed will be greatly improved. Currently, TRON's processing speed has exceeded 2,000 transactions per second, which is much higher than Bitcoin's processing speed of 7 transactions per second, so there are unlimited possibilities for future commercial use. At the same time, it also avoids the waste of resources caused by competitive mining.