#Bitcoin #mining #machines

Bitcoin mining machines are one of the ways to earn Bitcoins. Bitcoin is an online virtual currency generated by open source P2P software. It does not rely on the issuance of a specific currency institution and is generated through a large number of calculations by specific algorithms. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself ensure that currency value cannot be artificially manipulated by mass production of Bitcoins [1].
Any computer can become a mining machine, but the income will be relatively low, and you may not be able to mine a single Bitcoin in ten years. Many companies have developed professional Bitcoin mining machines, which are equipped with special mining chips and have computing speeds dozens or hundreds of times higher than ordinary computers [1].

The Bitcoin system consists of users (users control wallets through keys), transactions (transactions are broadcast to the entire Bitcoin network), and miners (through competitive calculations to generate a blockchain that reaches consensus at each node. The blockchain is a distributed A public account book containing all transactions that occur on the Bitcoin network) [2].
Bitcoin miners manage the Bitcoin network by solving a proof-of-work problem with a certain amount of work—confirming transactions and preventing double-spends. Since the hash operation is irreversible, it is very difficult to find the random adjustment number that matches the requirements, and requires a continuous trial and error process that can predict the total number of times. At this time, the workload proof mechanism comes into play. When a node finds a solution that matches the requirements, it can broadcast its results to the entire network. Other nodes can receive this newly solved data block and check whether it matches the rules. If other nodes find that the requirements (the computational goals required by Bitcoin) are indeed met by calculating the hash value, then the data block is valid and other nodes will accept the data block [3].
Satoshi Nakamoto compared the consumption of CPU power and time to generate Bitcoin to a gold mine consuming resources to inject gold into the economy. Bitcoin's mining and node software mainly initiates zero-knowledge proofs and verifies transactions through peer-to-peer networks, digital signatures, and interactive proof systems. Each network node broadcasts transactions to the network. After these broadcast transactions are verified by miners (computers on the network), miners can use their own proof of work results to express confirmation. The confirmed transactions will be packaged into data blocks. , data blocks are strung together to form a continuous chain of data blocks. Each Bitcoin node will collect all unconfirmed transactions and aggregate them into a data block. The miner node will append a random adjustment number and calculate the SHA256 hash value of the previous data block. The mining node keeps trying again and again until it finds a random tweak that produces a hash value below a certain target [3].

Mining is the process of increasing the currency supply of Bitcoin. Mining also protects the security of the Bitcoin system, preventing fraudulent transactions and avoiding "double spending," which refers to spending the same Bitcoin multiple times. Miners contribute algorithms to the Bitcoin network in exchange for the opportunity to receive Bitcoin rewards. Miners verify each new transaction and record them on the ledger. A new block will be "mined" every 10 minutes. Each block contains all the transactions that occurred between the last block and the current period. These transactions are added to the blockchain in turn. middle. We call the transactions included in the block and added to the blockchain as "confirmed" transactions. Only after the transaction is "confirmed" can the new owner spend the Bitcoins he received in the transaction [2].
Miners receive two types of rewards during the mining process: new currency rewards for creating new blocks, and transaction fees for transactions included in the blocks. In order to get these rewards, miners compete to complete a mathematical problem based on a cryptographic hash algorithm, that is, using a Bitcoin mining machine to calculate the hash algorithm. This requires powerful computing power, a long calculation process, and good calculation results. Bad as proof of the miner's computational workload, it is called "proof of work". The security of Bitcoin is ensured by the algorithm’s competition mechanism and the winner’s right to have the transaction recorded on the blockchain [2].
Miners also receive transaction fees. Each transaction may include a transaction fee, which is the difference between the inputs and outputs recorded for each transaction. Miners who successfully "dig" a new block during the mining process can receive "tips" for all transactions contained in that block. As mining rewards decrease and the number of transactions included in each block increases, the proportion of transaction fees in miners' revenue will gradually increase. After 2140, all miner income will be composed of transaction fees [2].
Mining is a process that decentralizes settlements, with each settlement verifying and settling the transactions processed. Mining protects the security of the Bitcoin system and enables the entire Bitcoin network to reach consensus without a central organization. The invention of mining makes Bitcoin special. This decentralized security mechanism is the foundation of peer-to-peer electronic currency. Rewards and transaction fees for minting new coins are an incentive mechanism that regulates miner behavior and network security while completing the currency issuance of Bitcoin [2].

The issuance and completion of transactions of Bitcoin is achieved through mining, which is minted at a determined but constantly slowing rate. Each new block is accompanied by a certain number of brand new Bitcoins created from scratch, which are rewarded as coinbase transactions to the miners who found the block. The reward for each block is not fixed. Every time 210,000 blocks are mined, it takes about 4 years and the currency issuance rate is reduced by 50%. During Bitcoin’s first four years, 50 new Bitcoins were created per block. Each block creates 12.5 new Bitcoins. In addition to the block reward, miners also receive fees for all transactions within the block [4].

Graphics card "mining" requires the graphics card to be fully loaded for a long time, the power consumption will be quite high, and the electricity bill will become higher and higher. There are many professional mines at home and abroad opened in areas with extremely low electricity bills such as hydropower stations. However, more users can only mine at home or in ordinary mines, so the electricity bills are naturally not cheap. There was even a case where someone in a community in Yunnan carried out crazy mining, which caused widespread tripping of the community and burned out transformers [5].
monetary security
Bitcoin withdrawals require hundreds of digits of keys, and most people will record this long series of numbers on their computers. However, frequent problems such as hard drive damage can cause the keys to be permanently lost, which also leads to The loss of Bitcoin [7].
hardware spending
Mining is actually a competition of performance and equipment. Some mining machines are composed of more such graphics card arrays. With dozens or even hundreds of graphics cards, the hardware price and other various costs are inherently high. Mining There are considerable expenditures. In addition to machines with graphics cards, some ASIC (Application Specific Integrated Circuit) professional mining machines are also entering the battlefield. ASICs are specially designed for hash operations and have quite powerful computing power, and because their power consumption is much lower than that of graphics cards, Therefore, it is easier to build scale and the electricity cost is lower. It is difficult for a single independent GPU to compete with these mining machines, but at the same time, the cost of this kind of machine is also higher.