Mr.Nakamoto's paper on the invention of Bitcoin mentions that the creation of bitcoin is calculated by the optimal hash value calculated by miners, and the first person who calculates this hash value, that is, the first person in the block, will get bitcoin. Others have had no success. How do these bitcoins come from? Is the optimal block now computed not by one person, but by a group of people? Then pay a certain amount of bitcoin based on their ability after they figure it out?

The principle of Bitcoin Mining

By consuming the computing power of their own computers to process the transaction information in the Bitcoin system, and more and more people and organizations join in this decentralized mining, everyone found that no one person or organization can monopolize the output of bitcoin mining. By institutional design, for any one person or organization to have a monopoly on mining Bitcoin, it would have to control more than half of the mining computers and equipment, or more than 51 percent of the Bitcoin network, which is impossible. The money from mining comes from Bitcoin rewards and transaction fees.

Bitcoin mining, mainly through the algorithm to get the bitcoins, and in the currency system, the basic is to make sure about every 10 minutes, there will have a node mining successful, and once someone is successful, mining and the currency system will reward the person a certain number of bitcoins, and this number is through the control algorithm.

Why bitcoin be mined, and how does the mechanism for mining come about?

First, bitcoin is a decentralized digital currency. To put it simply, a digital currency is a currency that requires neither paper money nor gold, silver or bronze. All money is stored online in digital form. This may seem very difficult to understand at first, but think about it carefully. How many people use paper money regularly today? In a sense, everyone's bank account is just a bunch of numbers.

As we all know, the banking system is a centralized institution, which controls all the transaction records, which is equivalent to a general ledger, which is a centralized management. Bitcoin, on the other hand, is the most obvious feature of decentralization, which means that everyone keeps the books together, there is no center, and the books are open and transparent.

So how do you get access to a Bitcoin ledger? According to Satoshi Nakamoto's theory, bitcoin is different from other currencies. The essence of bitcoin is a special solution produced by a bunch of complex algorithms, which must be produced by a specific, large number of complex algorithms. The computers that compute this special solution are called nodes.

When a particular solution is solved, the Bitcoin system generates a corresponding number of Bitcoin blocks as a reward, and each block reward can be considered as a ledger. When each node finds the special solution, the system will have the next new special solution. When the new node finds the special solution, the billing right will be transferred to the next node along with the last node. This process goes on and on and on, and the calculation of the reward of the bitcoin block, the process of mining for bitcoin, is what we call "mining".

Why mining bitcoin

It should be mentioned here that the whole process of bitcoin mining mainly relies on computing power. The stronger the computing power, the more solutions can be checked within the same time, so as to find the unique correct particular solution faster. As a result, the only way to attack the system is with more complex and powerful computing power (generally thought to require more than 51% of the total system's computing power).

In order to encourage everyone to actively participate in bookkeeping and make the Bitcoin system more secure and stable, the system will give everyone the corresponding bookkeeping transaction fee when he or she completes the calculation of the particular solution. This is why more and more people participate in bitcoin mining in recent years.

Since China and the United States tightened regulations on Bitcoin in May, China has shut down many mine field. Many people can only buy bitcoin to make investment plans, but some new entrants are easily fooled because they don't know the bitcoin system. Here we remind that we must invest bitcoin through the formal Bitcoin trading platform (such as OKEx trading platform), which can not only help you understand the knowledge of bitcoin and the market trend faster, but also important to invest bitcoin on the formal platform, which is completely safe in terms of security.