Why mining requires solving mathematical problems (why mining can earn money)

Why do we need to solve math problems in mining? Why do we need to solve math problems in mining Bitcoin? How can it solve the problem? Because the essence of mining is a complex process of Proof of work. Traditionally, workload generation is a task, but with the development and progress of computers, this process becomes increasingly difficult, resulting in many different challenges In this article, we will analyze from two perspectives: firstly, there is a relationship between blockchain and smart contracts; The second is to determine consensus rules through mathematical methods and how to use them

Next, we will discuss a question about “what is Cryptocurrency”: “what is Cryptocurrency exactly?” – Why do we need to solve mathematical problems in mining (Figure 1)

First of all, we should make clear that mining is so important because its principle is simple, and it can help us understand this number without knowing specific algorithms or models, such as hash functions, time stamps and other basic concepts Due to the fact that this type of knowledge is only applicable to specific fields, for most people, they are not too concerned about the technological progress in a specific field, but rather about whether the technology behind it can truly be applied For example, if a person wants to package a coin into a chain and distribute it to another node, they must know the specific information of the transaction to make the entire network more secure. This is why I often use mathematical methods to explain this statement, and think that Cryptocurrency is not only valuable but also can be used for other purposes, especially to facilitate learning, so it is also very suitable as an investment tool. In addition, some illegal elements use these characteristics to attack others and even control their own funds In fact, when people discover certain data, it is easy to be maliciously manipulated or artificially tampered with. However, this is not the case. Even if someone has access to all the relevant data and can earn rewards by publicly checking their account balance, they cannot accurately calculate any results, which is the game style of very few people

Why can mining make money

Why can mining make money? Mining is the process of using computers for calculation and production, which is very time-consuming and cumbersome. And now many internet companies are starting to use this technology When Bitcoin was born, many countries were striving to make people understand the advantages of this technology, the wealth effects it brings, and its future development potential. However, with the development of the blockchain industry, more and more people are realizing that this emerging technology and industry will have a profound impact on various fields of human society. So how can we obtain rich returns in this process? Here are the answers to these questions What is mining? Mining is essentially a new machine or a new equipment to replace the original Proof of work (POW) consensus mechanism, so as to provide users with a more reliable data access opportunity, while not wasting power resources. Therefore, it can make profits by mining various things, such as buying an ASIC chip; Put your hardware directly into the server for yourself to choose from; Connect the computer and run the nodes, etc. This avoids situations where the server cannot be accessed normally due to network congestion or transaction delays. (Simply put, when you want to participate, you can first buy a flight ticket, then go to the hotel to handle the procedures. If you haven’t paid, you need to wait for a long time before joining the system, and then enter the cloud computing platform to continue digging for coins. Of course, you can also not pay for electricity.). What are the advantages of mining? According to BTC.com data, the current network difficulty is about 20.82T, and there are still about 18 days and 3 hours left to halve. There is less than 5 hours left to adjust, and it is expected that the third halving event will occur in April.