1. Digital currency using POS equity proof mechanism
What does it mean for Bitcoin mining to adopt a proof-of-work mechanism?
Proof of Stake, referred to as POS, is also known as the equity proof mechanism, which is similar to storing assets in a bank. The bank will allocate corresponding income to you based on the amount and time you hold digital assets.
Similarly, for PoS digital assets, the system will allocate corresponding rights and interests to you based on your currency age. Coin age is the product of the number of coins you have held and the time you have held them. For example, if you hold 100 coins for a total of 30 days, your coin age is 3,000.
Compared with PoW (proof of work mechanism), PoS has two advantages
. First of all, PoS will not cause excessive waste of electricity because PoS does not require mining through competition for computing power. Secondly, POS is more difficult to carry out 51% attacks. You can only attack if you have 51% of the gold coins. If the network is attacked, your own interests will be harmed, which is obviously not cost-effective.
Compared with PoW (proof of work mechanism), PoS has two advantages. First of all, PoS will not cause excessive waste of electricity because PoS does not require mining through competition for computing power. Secondly, POS is more difficult to carry out 51% attacks. You can only attack if you have 51% of the gold coins. If the network is attacked, your own interests will be harmed, which is obviously not cost-effective.
Currently, there are many digital assets that use PoW to issue new coins and PoS to maintain blockchain network security.
2. What is PoS - Proof of Stake?
, a system that distributes interest based on how much and how long you hold the currency. In POS mode, your "mining" income is directly proportional to your currency age and has nothing to do with the computing performance of your computer.
3. What does mining mean?
Mining, the process of using computer hardware to calculate the location of digital currency and obtain it is called mining. For example, at every other point in time, the system generates a random code on the system node. All computers on the Internet can look for this code. Whoever finds this code will generate a block and receive one. This process is what people often call mining. Computing this random code requires a lot of GPU computing, so miners buy massive graphics cards to make profits faster.
Confirming virtual currency transactions requires running complex operations. Miners use computers to perform these operations and are then rewarded with virtual currency. This is the so-called virtual currency mining mechanism.
The virtual 4-year total will generate 10,500,000 BTC, and the output will be halved every 4 years. From year 4 to year 8, 5,250 will be generated and 2,625,0 will be pushed. The total amount of virtual currency generated is 0 BTC.
1 virtual currency is divided into BTC according to the data structure, and the minimum unit mined by miners is C.
In layman's terms, it is like a golden mountain composed of a total of 21 million gold coins. In order to get it, players need to use the computing power of the computer to calculate the numbers according to the current rules.
Simply put, the mining process records data on the chain through blockchain technology, and then proceeds with the mining process. The reward is a newly issued digital currency.
In 2022, the issuance of digital currency will be mainly divided into two types: one is to compete for accounting rights through computers running specific algorithms (POW proof-of-work mechanism), and the other is to obtain interest from the currency (POS proof-of-stake mechanism) .
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Why “mining”
It is an online ledger (bank) with no central organization. The account is updated approximately every 10 minutes? A very complex mathematical problem is designed that requires computers to perform complex calculations. Whoever calculates the correct result first will have the right to record these 10 minutes of accounting. Those who keep accounts will receive some rewards. Because this process is somewhat similar to digging for gold in a gold mine, it is called "mining." In the early days, ordinary computers were used for mining. In 2022, because of the increased computational difficulty, we will call these devices “mining machines.”
标签： #Digital Currency #Mining #Currency #Virtual Currency #Cash Register
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