Miners and What They Mean (Miners’ Meaning Comes from Korean Comic Language)

08/19/2023 02:36 • Tech Ticker • 152 views

Miners are an important part of the Bitcoin network, with various roles (including mining machines and operations) in various aspects of mining. So, what do miners mean and what impact do they have? Let’s introduce them one by one.

Mining is a network system composed of many industry participants, involving some of the most core issues: excessive computing power leads to a decrease in block rewards, faults in ASIC chip manufacturers make the entire network insecure, and hardware design lowers due to increased demand for GPUs, allowing more people to enter this market. On the other hand, if there are no devices or machines with ASICs to provide more data support, mining itself becomes a very dangerous market. Therefore, to prevent similar problems, many companies have started developing their own products to meet this demand. For example, Bitmain has launched a smart contract platform Ethash (Ethereum) based on Avalanche blockchain technology, and applied it to a decentralized exchange project called BitcoinCore built on Ethereum, and used it to create dedicated “mining software”, BCH, making it the first true Bitcoin mining solution. There are already many services for mining farms on the market. For example, large exchanges such as F2Pool and Huobi use this mechanism for mining, so they are also considered channels that create profits for customers in a certain way, and these transactions are directly implemented through cloud computing, but they are not real Bitcoin mining businesses.

Technically, the working principle of miners is to hand over their work to professional computer teams for verification. This can avoid the influences caused by human factors, while improving efficiency and security; on the other hand, it can optimize user experience.

First, when you are ready to run the server for the mining machine, a large amount of code will be generated and sent to your mining machine. If you want to get a large profit, you can choose to join a mining pool or rent other facilities as a backup. Once there is a new server, miners can access the required power and do not need additional maintenance costs.

Secondly, as more and more manufacturers start to support the development of mining infrastructure, the prices of cryptocurrencies will also rise. According to data from CoinMarketCap, between January and August of this year, the price of BTC has fallen by more than 50%; the value of ETH has also declined; but the return rate in the past year has significantly increased. At the end of November 2020, the price of ETH reached a historical high of $3,000. However, since the beginning of 2020, this number has been steadily declining. The lowest point in 2019 occurred in early February, when the price hovered around $2,500, and it has now fallen below $2,000.

Miners’ Meaning Comes from Korean Comic Language

On March 9, crypto_eth, a member of the Bitcoin community, posted “What does miners mean? I heard it means ‘digging’.” According to the explanation, this means that in a sense, “mining farm” is a machine with a large workload. However, in reality, the “miner” (the person mining blocks) is actually a very complex technical concept-which can be used to calculate transactions and maintain the ability of network nodes. Although it is still unclear what a cryptocurrency mining machine is, some experts believe that this statement may be due to the development of the blockchain industry, or the understanding of blockchain technology is constantly improving. “Computing power, hash algorithms, and other technologies are also needed.”

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/25009.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Miners and What They Mean (Miners’ Meaning Comes from Korean Comic Language)

Miners’ Meaning Comes from Korean Comic Language

Related recommendations