When it involves blockchain technology, most of the people acknowledge the foresight of this technology. Not only Internet giants, such as Facebook, Alibaba, Tencent, Baidu, but also some financial banks are trying to apply blockchain technology to their business scenarios. But when it comes to digital currency, it's very controversial, especially a question: what's the significance of mining with digital currency, which consumes so many resources?

In fact, this is a dispute between blockchain with cryptocurrency and blockchain without cryptocurrency. At present, China prefers blockchain technology without cryptocurrency, while foreign countries pay more attention to the application of blockchain with cryptocurrency. So today, let's talk about what is the meaning of mining in blockchain and what is the significance of this behavior?

In short, the so-called mining in blockchain is different from the mining in our daily life. It refers to the nickname of the exploration way to obtain digital currency in blockchain network. Because the number of coins is limited, and this behavior is similar to the action of gold mine, so we call the way of obtaining bitcoin through this rule mining, and the people involved in data processing, we call them miners.

The significance of mining is twofold

First, mining actually determines the bookkeeping right of data.

Blockchain is actually a database that everyone can participate in data processing and decentralization. Since everyone can participate in data processing, there will be a lot of people involved, so who processes the data with is a problem. So there is a mining mechanism, who can process the data fastest, best, and get the recognition of the system, who can get the right of data accounting.

Second, it is actually an incentive system, which helps to maintain the decentralized ecosystem of the whole blockchain.

We all know that the biggest role of blockchain is decentralization, so as to ensure the transparency of data information. Since it is decentralized, there is no special team for data maintenance, and it will be completely handed over to the community or the miners for processing. Then there will be another problem. Why do you maintain data without any reason?

In the blockchain network, whoever can get the data bookkeeping right can get a certain amount of digital currency as reward, while the digital currency represents the value of the system. Therefore, the more people participate, the higher the value of the system, the higher the price of digital currency, which will attract more people to participate, the higher the degree of decentralization of the whole system, and the higher the degree of security, thus forming a positive closed-loop; this is the essence of the coin block chain, and mining is an essential part of this ecology.

The coin free blockchain, instead of mining, is to maintain the data in the blockchain by a centralized organization or a multi centralized organization. Although it will improve efficiency and save resources, it sacrifices the essence of the blockchain decentralization.

Blockchain is known as the trend precisely because its decentralized characteristics change the transparency of Internet data. If blockchain technology is applied to achieve an alternative data monopoly situation, blockchain will lose its original significance. Moreover, with the progress of technology, the resources consumed by the mining of blockchain are also decreasing.

So mining is not a meaningless thing, but mining is an important part of the blockchain, which not only helps to maintain the operation of the network, but also protects the security of the network. As long as you want to try, everyone can also experience the feeling of "mining" at home.

Welcome to the previous article ："jokining talk" about blockchain

🤩“Joking Talk” About Blockchain | First Lecture : What Is Blockchain❓

🤩“Joking Talk” About Blockchain | Second Lecture : Why Blockchain Is Called Blockchain❓

🤩“Joking Talk” About Blockchain | Third Lecture : Characteristics of blockchain - decentralization❗

🤩“Joking Talk” About Blockchain | Fourth Lecture : The Principle Of Block Chain Operation❗

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