The Best Crypto Mining Farm Guide – Bitcoin Mining Power Supply

Bitcoin mining is the only way for new bitcoins to be issued. The process of mining activities is as follows:

(1) Each miner node calculates its hash solution (Hash) with the content of the latest block in the local blockchain as the input value;

(2) Bitcoin miners screen the transaction information forwarded or published by other nodes, delete the transaction information that has been included in the blockchain, have insufficient balance or have other errors, and also continuously broadcast the recorded information to the outside world. trade;

(3) Randomly generate a set of strings, by combining the string with the previously obtained hash value and the entered transaction information as input, the output generates a new hash value;

(4) Check whether the new hash value is less than the current difficulty threshold. If so, the mining is successful, and a new block is generated and broadcast to the whole network. If the hash value is greater than the threshold, restart from step 3. calculate.

(5) Other nodes receive the newly born block and verify whether its hash value meets the requirements. If enough miner nodes prove that the block is uniquely valid, other nodes will receive the block and add it to the block. added to the local blockchain. Miners who successfully mine new blocks will be rewarded with a certain amount of Bitcoin, and the Bitcoin system will generate a new block in about ten minutes on average.

(6) If other miner nodes successfully mine a new legal block, the remaining nodes will add this block to the local, and then start mining again from step 1.

In order to effectively control the fast production speed of the new area, the Bitcoin system continuously adjusts the difficulty threshold of the hash algorithm according to the total computing power of the entire network. The larger the computing power of the entire network, the smaller the threshold and the higher the difficulty.

When the time interval when a new block is mined is less than 10 minutes, the system will automatically increase the difficulty of the hash algorithm of the next block, and when the time interval when a new block is mined is greater than 10 minutes, the system will reduce the difficulty of the next hash algorithm. Eventually, a new area is generated on average every 10 minutes.

That is to say, the average computing power put into production in a period of time is directly proportional to the mining difficulty. The higher the computing power of the entire network, the greater the mining difficulty. Miners participate in the competition of the entire network with their own computing power, and mine according to the probability determined by the ratio of their computing power to the computing power of the entire network. If the hash value of the previous block is successfully calculated first, it will be announced to the network. , and is recognized by the entire node network, then it can be counted as successful mining.

If someone mines ahead of time within ten minutes, the previous operation will be invalid and a new block can be created.

The working method of paying computing power to solve the hash problem used in Bitcoin mining, also known as proof-of-work (proof-of-work), this mining method is accompanied by extremely high power consumption, power consumption and representative The bitcoin price of miners’ income is proportional to the price.