When did the currency start mining (what exactly is mined)?

When did the currency start mining? There hasn’t been anything new since the halving of Bitcoin. According to the latest data, the total network hashrate of Bitcoin reached 130.5T in June 2019, with a block height of 105,000. Currently, there are over 37 million BTC in circulation, growing at a rate exceeding 200 million yuan.

According to statistics, by the end of 2019, the global network will generate approximately 10 to 15 billion dollars worth of assets per day (valued at close to 10 million dollars), with an annual digital currency transaction volume of over 2 billion yuan, and most of these transactions are conducted through exchanges, so miners have a relatively high income. (Image source: Internet)

With more and more people joining the blockchain world, this group may feel confused or regretful because of their professional knowledge in investment and technology, as well as their familiarity with the industry. Therefore, they can now participate in mining projects. However, many investors do not pay particular attention to their wallet addresses and cryptographic matters, but rather focus on problems such as price fluctuations, scams, security incidents, and so on. So how can we better control risks? First of all, it is important to understand that both individuals and companies passively accept the acquisition and dissemination of information. Secondly, as practitioners in the financial industry, they are generally engaged in the development of high-frequency financial applications, such as supply chain finance and payment settlement services. When people realize the potential of blockchain technology and try to use its characteristics to provide solutions for various industries, they will discover that this industry is worth studying.

Of course, if you really want to make good use of these tools, there will certainly be many people who buy altcoins and air coins for speculation. However, it is hard to imagine this happening with ordinary retail investors. But at least it can illustrate one fact: most users simply use altcoins, instead of buying other cryptocurrencies directly with altcoins, and are only looking for a long-term profitable method!

In addition, there are many concepts about blockchain. For example, Bitcoin is a new computer system algorithm that allows smart contracts to execute code in a completely different way, enabling peer-to-peer transfers. This is the basis of blockchain and also makes it one of the world’s largest distributed ledger networks. Litecoin, on the other hand, is an open-source software platform that provides a more cost-effective new model – verifiable random number mechanism, which can achieve more efficient exchange processes among different nodes on the chain compared to existing systems. And due to the technical characteristics of blockchain, anyone can construct a brand-new consensus algorithm through this protocol and extend it, making the entire economic system more fair and with greater development prospects. Additionally,

What is mining exactly?

According to cointelegraph news, in the cryptocurrency world, there is a term called “mining”. It refers to the process of using Bitcoin for digital currency transactions and using them as “commodities” to purchase certain products and services. When someone asks this question, “Why do we mine?”

The answer is “because we bought a large amount of Bitcoin in exchanges”. So, how can we actually mine these Bitcoins? First, we need to understand what mining is. It is a technology that achieves value transfer through blockchain. If a project wants to obtain a large amount of cash flow or have enough idle funds for development, it needs to establish its own encrypted asset network and corresponding financial infrastructure to meet its growing needs.

Secondly, mining generates income in order to obtain various tokens. Generally, you need to invest some money in building platforms, maintaining systems, and even doing development work (such as your smart contracts). However, the costs of many projects are high, and the income they want to obtain is often less than the cost people are willing to pay, and they also have to pay expensive fees and operational risks. Therefore, why do we need to mine and what exactly needs to be mined? Let’s look at it from a fundamental perspective.