🎉 One, Definition of Bitcoin Mining
Participants earn newly generated bitcoins as rewards by solving complex mathematical problems, known as 'Proof of Work'. In simple terms: using a computer to solve some complex math problems and contributing computational power will earn rewards (cryptocurrency).
Miner: A node that verifies transactions and creates new blocks by solving complex mathematical problems. Miners receive a certain amount of cryptocurrency as a reward.
Mining Machine: A hardware device specifically used for cryptocurrency mining, including chips, integrated circuits, and graphics cards.
🎁 Two, Principles of Bitcoin Mining
1. Blockchain Technology: Bitcoin is based on blockchain technology, where all transaction records are stored in a public ledger known as the blockchain.
2. Proof of Work: The core of the mining process is solving a complex mathematical problem, namely finding a hash value that meets specific conditions. This condition is determined by adjusting the difficulty target of the Bitcoin network.
3. Verification and Recording: When a miner finds a valid hash value, they broadcast this block to the network, where other nodes will verify the validity of this hash value.
🌻 Three, Bitcoin Mining Hardware and Software
1. Hardware: Bitcoin mining requires a large amount of computational resources, so miners typically use specialized mining equipment, such as ASIC (Application-Specific Integrated Circuit) mining machines, graphics cards, chips, etc.
2. Software: Miners need to download and run specialized mining software that can automatically execute mining algorithms and communicate with the Bitcoin network. Mining software typically provides a user interface to help miners monitor their mining progress and earnings.
🎉 Four. Other Forms of Mining
1. Staking Mining (Proof of Stake, PoS)
Staking mining is a mining method based on the Proof of Stake (PoS) consensus algorithm. In this method, holders lock a certain amount of cryptocurrency (Token) as 'stake' in a specific wallet or blockchain network to earn mining rewards or rights.
2. Storage Mining (Proof of Capacity, PoC)
Storage mining is a method that utilizes hard drive storage space for mining. In this method, the size of the hard drive's storage space serves as a valid proof of mining power; the larger the hard drive capacity, the higher the earnings from mining.
3. Transaction Mining
Transaction mining is a mining model created by exchanges to attract trading volume. In this model, users trade on the trading platform, and the trading volume serves as proof of the miner's power.