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Learning blockchain from zero 2: Mining link of digital currency

Time : 01/06/2022 Author : c4k2jh Click : + -
        It has been more than ten years since Nakamoto discovered the first bitcoin on January 3, 2009. During this period, countless digital currencies such as eth, EOS and SIPC have been derived based on blockchain technology. As the level 0 market of digital currency industry, mining is the only way to produce digital currency, and it is also the most basic way. Through mining, investors can directly obtain the most primitive digital currency. When the price of digital currency increases, mining investors, namely miners, can obtain corresponding benefits. In the field of digital currency, mining is a hot word. Some people are positive about it, while others are skeptical.
 
        However, in terms of the essence of mining, it is only a process of generating a block and chaining it into the blockchain, and it is also a process of digital currency issuance. Miners record the data on the chain through blockchain technology, then broadcast and obtain digital currency as a reward. At present, the mainstream issuance methods of digital currency are mainly divided into two kinds: POW workload proof mechanism (represented by BTC, dash and XmR) and POS equity proof mechanism (represented by atom and xtz). One is to compete for bookkeeping rights and interests by running specific algorithms through computers, and the other is to obtain benefits by holding effective digital currency. The two mechanisms have different principles, but both take the issued tokens as bookkeeping rewards.
 
        With the currency issued by POW mechanism, mining requires miners to use computers in the network to solve complex mathematical problems and obtain a specific hash value. The miner who first calculates the correct hash value will obtain the bookkeeping right and the handling fee of the relevant amount. Each block has limited time to solve problems and reward tokens. Take bitcoin as an example. The later the time is, the more difficult it is to mine. The more people there are, the more difficult it is to mine. Its core logic is that who has the power and computing power, who gets more rewards. The POS mechanism is a co governance algorithm in the public chain, which can be used as a substitute for the pow algorithm. By pledging a certain token, the reward distribution is carried out according to the time and quantity of the pledged coin. The holder can intervene in the main network to become a verification node or entrust the coin to the verification node for dividends. Its core logic is that the holder has network control. In short, the longer the holder holds the coin, the lower the difficulty of mining.
 
        Currency price, calculation power and electricity charge are the core elements that determine whether POW mining is profitable. The stronger the performance and quantity of mining machines, the stronger the calculation power, the higher the mining revenue. Due to the pow mechanism, miners consume a huge amount of computing power, which virtually raises the handling cost, and even raises the worry of "51% attack" of computing power centralization (theoretically, as long as they master 51% of the computing power of the whole network, they can master the whole network). Moreover, POW mining itself needs to consume a lot of energy, and the unreasonable use of electricity in mines is criticized by the society. Therefore, from 2018, many digital currencies, including eth, began to turn to POS mechanism or hybrid mechanism.
 
        Compared with pow mining, which relies on computing power, POS abandons the competition of computing power and consumes less energy. It doesn't need a bottom miner or rush to the low land of electricity charges, so that most users can participate. Secondly, because miners are natural holders of money, they need to maintain network security. Miners themselves are also holders of money, so they have the need for transfer. The procedure cost is low, and the online transfer is faster and cheaper. With the wave of decentralized economy, pow, POS, dpos, pbft, raft, pxos, Zab and other mechanisms continue to emerge, the value of large-scale commercial applications begins to highlight, technologies and models are still upgrading and changing, and the market is flooded with more new ways of playing. No one knows who will be the next subversive industry.
 
        The pulsar public chain issued by Chengdu POSA technology adopts the consensus algorithm of DS pow, that is, the combination of pow+pos, which supports ordinary users to participate in mining and obtain income through equity entrustment, which will have an impact on miners' mining competitiveness. Users only need to find the agent miner and entrust their pulsar token to the miner to mine. The more pulsar tokens the agent miner is entrusted with, the greater the probability of successful mining and the more revenue the user will receive.
 
        
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