What exactly does mining imply? All about bitcoin mining in one place

I frequently hear people who play blockchain mention the word mining; mining is not m31s whatsminerreally to dig mines as the name implies; since the birth of bitcoin, more and more people have entered the bitcoin mining industry; bitcoin mining has gradually become an industry; and this article is primarily about what things to do with bitcoin mining.

Bitcoin Mining Fundamentals

Satoshi Nakamoto created the bitcoin mining mechanism based on the Proof of Workload (POW) algorithm, with the goal of completing a bitcoin transaction every 10 minutes. So, where does all of this mined bitcoin end up?

Satoshi Nakamoto assigned a puzzle (finding the correct hash value) to each node inmining app the Bitcoin system every 10 minutes, and miners across the network collaborated to solve it. Whoever figured out the answer first was rewarded with a certain amount of bitcoins from the nascent bitcoin, and chain miners were rewarded with a certain amount of bitcoins from the nascent bitcoin.

Bitcoin initially produces 50 coins every 10 minutes, producing 50 x 6 x 24 = 7200 bitcoins per day; after 4 years, produces 25 coins every 10 minutes, producing 3600 bitcoins per day; after another 4 years, produces 12.5 coins every 10 minutes, producing 1800 bitcoins per day; and so on. When the blockchain is released around 2140, there will be approximately 21 million bitcoins, which is the total number of bitcoins, so it will not increase indefinitely.

Currently, as the bitcoin network's arithmetic power grows, the amount of arithmetic miner gatepower a single device has is small in comparison to the share of arithmetic power in the entire bitcoin network, and it is extremely difficult for individuals to configure a small number of mining machines to mine blocks, and the time it takes to successfully obtain mining rewards will be extremely long. As a result, many miners join mining pools to mine together, where the mining farm only handles calculations and the pool handles data packaging. So, what exactly is a mining pool?

A mining pool is a platform where miners pool their computing power to mine and distribute their earnings through a network. Mining pools enable miners to pool their resources and generate blocks more quickly and centrally, allowing them to be rewarded with blocks in a timely manner without having to wait an extremely long time. Miners connect their machines to the pool and then distribute their earnings based on proof of work. The earnings of the miners are not related to the blocks generated by the pool, but rather to the workload of their machines, and the pool assumes the risk of unstable blocks for the miners, which is equivalent to receiving a fixed salary based on their workload.

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