Why mining? Why do you need a mining pool?
Bitcoin mining is actually the process of doing tasks in the Bitcoin system to obtain bookkeeping rights and rewards. This task is similar to "gold mining and gold panning" in real life, so many people call it mining. mine.
Just like the mined gold can be exchanged for food, the bitcoins obtained from bitcoin mining rewards can also be exchanged for cash. When more and more people participate in mining, everyone will find it more and more difficult to obtain rewards. At the same time, more and more people It is discovered that Bitcoin can be profitable, and more people pay attention to it, and its value is also pushed up by everyone.
Bitcoin mining principle
The transaction information in the Bitcoin system is processed by consuming the computing power of their respective computers. At the same time, when more and more people and institutions join this decentralized mining, everyone finds that no one person or institution can monopolize this mining industry. According to the system design, if any person or institution wants to monopolize the mining output of Bitcoin, it must master more than half of the mining computers and equipment, that is, more than 51% of the Bitcoin network, but this is The impossible. Mining income comes from Bitcoin rewards and transaction fees.
In a brief summary, mining is the process of confirming transactions in the virtual currency system and forming transaction records into new blocks. Only miners who grab the bookkeeping rights can get virtual currency rewards.
Why mining?
For example, in the Xunlei P2P decentralized download network, everyone can act as a node to upload data and download data. In this way, even if the link to the download website fails, the file can still be downloaded. Many people think that as long as it is With P2P downloading, the files will always exist online.
If Bitcoin is essentially a P2P ledger, and the accounting records are shared by everyone, why do we need miners? We also need to pay miners fees and waste electricity. Isn’t this a waste of resources? In fact, there is a misunderstanding here, go to A characteristic of the centralized peer-to-peer network is that each node is equal, and each node can leave, delete data, shut down at any time, and will not serve everyone obligatoryly, so many people are not willing to leave it on all the time. p2p software, so many times, some rare resources may never be downloaded.
The mining reward mechanism of the Bitcoin system just solves the problem that each node is equal and has no obligation to serve everyone, because as long as you pay resources and computer resources, you will get rewards from the system, more work, more pay, and the system runs automatically , no one can tamper with it, this is fair, everyone can get benefits through their own efforts, this is the universal gravitational force of interests on human beings, and it is also the original motivation for human beings to do something from beginning to end, and rewards become the source of strength , constantly inspiring more people to join in building and maintaining this system. It is because of mining that a large number of miners ensure that the system is immortal.
Why do you need a mining pool for mining?
At the beginning, Bitcoin only needed simple mining software, and computers with ordinary configurations could mine Bitcoin. However, as the price of Bitcoin rises, people continue to join the mining queue, and the computing power of the entire network continues to rise. It is already difficult for a single device to mine bitcoins.
At this time, multiple miners joined forces to establish a mining pool. Since the computing power of many miners is gathered, the computing power of the mining pool accounts for a large proportion, and the probability of grabbing the bookkeeping right is higher, and the probability of obtaining Bitcoin is higher. The bitcoin rewards generated by the mining pool will be distributed according to the proportion of each miner's contribution to computing power. Compared with mining alone, joining a mining pool can obtain more stable income.
For miners to mine, it is very important to choose a safe, stable and good service mining pool. Not only can they get higher mining rewards, but also the supporting services of the mining pool can help miners solve mining problems and become the right-hand man for miners to mine .
