Meaning of mining | Bitcointalksearch.org

zasad@

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Quote from: Masplanc on July 15, 2021, 12:59:52 PM

If no mining of Bitcoin will it end the existence of Bitcoin?
Mining of Bitcoin is it about programming and can it be done in any computer?

I have heard a couple of rumors that China is preparing the next dirty trick for cryptocurrencies.
Probably they will forbid companies to produce ASICs. I can't think of a worse idea.
If all ASICs break, then we will again return to mining bitcoin on video cards.
The transition to the POS algorithm for bitcoin is not planned.

Welsh

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Quote from: Upgrade00 on July 15, 2021, 03:58:34 PM

I am of the opinion that miners would have such a long time to prepare for this event that it should not have a major impact, as they should have adjusted already.
Within the next 3 halvings, the coinbase reward would drop below 1BTC, and we are still over a hundred years to the last mined bitcoins with more than 25 halvings between, so the effect from less mining reward should be expected in the next couple of years and should be balanced out after a while.

The incentive drops slightly in the short term, but due to Bitcoin's value rising significantly after each halving, given enough time that is there is still enough incentive. If Bitcoin's price becomes more stable, and once the block rewards are removed, albeit that's a very long time, there will likely be little incentive for most people. That of course depends on the amount of volume the Bitcoin network is seeing, if there's enough transactions by then on a daily basis, it might be very incentive. It all really depends on the state of Bitcoin once the block rewards are removed.

When I made the comment above, I wasn't thinking in the short term, i.e 100 years. I was thinking after that fact, and that nothing is guaranteed at that point because it depends on the value of Bitcoin, and the volume of the network. Fortunately, at the moment we have block rewards, volume of transactions, and price in our favour.

Upgrade00

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Quote from: Welsh on July 15, 2021, 02:36:54 PM

It probably will at some point, especially when there no longer are block rewards, and miners will be relying on fees to recuperate their effort.

I am of the opinion that miners would have such a long time to prepare for this event that it should not have a major impact, as they should have adjusted already.
Within the next 3 halvings, the coinbase reward would drop below 1BTC, and we are still over a hundred years to the last mined bitcoins with more than 25 halvings between, so the effect from less mining reward should be expected in the next couple of years and should be balanced out after a while.

Magicalking

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Mining is essential aspect of the blockchain, it solves the double spend problem. Bitcoin miners are like auditors, their job is to verify the legitimacy of each transaction. Miners spend hours tinkering at the problem. The first miner who discovers a solution to a mathematical puzzle gets a reward in bitcoin. Mining is expensive to run, you need a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) to set up a mining rig.
There are scam applications on the web that claim to be mining Bitcoins. The concept of Mining is misconstrued by the public so much so that mining scams are becoming more popular

Smartvirus

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Minig has been a vital aspect of human existence. It entails a process of extracting minerals or precious stones in its ore for refining into its finished and much more appreciated form. Well, that's in the sense of the word though or as we knew it before the evolution of bitcoin and blockchain technology. So, to a numb, mining could be discribed as the process of extracting or bringing into existence new bitcoin. But again, that's just a part of mining as it entails a lot of other activities attached to it. Like arranging and confirmation of transactions into blocks. With the much resources regarded for mining, mining has become a lot more expensive to be practiced by a common man thees days.

Welsh

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Quote from: bitmover on July 15, 2021, 02:24:47 PM

It is very unlikely that the hashrate of the network will drop in the future. However, the mining algorithm may change and ASIC become not so effective and people may be able to mine with GPU again (or some other hardware that may show up) . There is some discussing about that, but it is very unlikely now.

It probably will at some point (it very frequently decreases, and increases), especially when there no longer are block rewards, and miners will be relying on fees to recuperate their effort. That's not to say it won't be profitable, but much less people will be mining, at least that's how I see it going since mining Bitcoin is built on incentive, by removing one of the revenue generates i.e block rewards, that it almost certainly going to impact the amount of people getting into mining, and the amount that continue. Although, I don't agree with your statement about it dropping in the future, you are probably correct up until a certain point, that is the hashrate will probably not drop significantly in the short term.

bitmover

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Non-custodial BTC Wallet

Quote from: Masplanc on July 15, 2021, 12:59:52 PM

Mining of Bitcoin is it about programming and can it be done in any computer?

Mining is not about programming. Mining is about processing power, more specifically hashrate (amount of hashes per second).

Simply put, mining is about trying to find a number that together with a block full of transactions generate a small number after being hashed. Sounds complicated, right?

Mining is basically a lotery, where miners try to find a random number with their hashing power. The one who finds it first, gets the block reward. This is why processing power is important. This is why you need to spent lots of resources to mine a block.

Quote from: jackg on July 15, 2021, 01:14:47 PM

Quote from: Masplanc on July 15, 2021, 12:59:52 PM

Mining of Bitcoin is it about programming and can it be done in any computer?

It needs to be done in specific chips now known as ASICs - algorithm specific integrated circuit. The IC part is just the same technology as in your computed but it just has different chips in it.

Today this is true: Bitcoin needs to me mined using specific hardware called ASIC.
but it wasn't always like that, and in the future things may change again. In Bitcoin early days, anyone could mine bitcoin from their personal computer.

Things changed because a lot of people started mining, and in few years some companies developed specific hardware that have a very high hashrate, increasing enormously the processing power.

It is very unlikely that the hashrate of the network will drop in the future. However, the mining algorithm may change and ASIC become not so effective and people may be able to mine with GPU again (or some other hardware that may show up) . There is some discussing about that, but it is very unlikely now.

aoluain

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Miners [computer hardware] group, broadcast and confirm the Bitcoin transactions and create
the Bitcoin Blockchain.

If mining stops no transactions get confirmed.

The chances though for the forseable future are 0% as soon as mining difficulty reduces
significantly new people will create new miners.

Welsh

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Bitcoin as a currency would likely end without any mining for a substantial amount of time. Since, Bitcoin users rely on miners to confirm their transactions, therefore if there is no one mining transactions wouldn't be able to be confirmed, and therefore no transactions being sent between users. However, having said that its highly unlikely that we will get to that point in our life times.

It used to be able to be done on any computer, but without significant investment in specialized equipment these days; you aren't going to be able to make any profit.

jackg

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https://bit.ly/387FXHi lightning theory

It needs to be done in specific chips now known as ASICs - algorithm specific integrated circuit. The IC part is just the same technology as in your computed but it just has different chips in it.

Without mining, indeed the chain will die. But it's probably impossible we get to that point based on mining rewards (unless bitcoin becomes worth nothing and investors think it'll stay like that)...

Masplanc

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If no mining of Bitcoin will it end the existence of Bitcoin?
Mining of Bitcoin is it about programming and can it be done in any computer?

Topic: Meaning of mining (Read 154 times)