@ -248,7 +248,7 @@ A good way to describe mining is like a giant competitive game of sudoku that re
((("mining and consensus", "mining farms and pools")))In <<user-stories>>, we introduced ((("use cases", "mining for bitcoin")))Jing, an entrepreneur in Shanghai. Jing runs a _mining farm_, which is a business that runs thousands of specialized mining computers, competing for the reward. Every 10 minutes or so, Jing's mining computers compete against thousands of similar systems in a global race to find a solution to a block of transactions. ((("Proof-of-Work algorithm")))((("mining and consensus", "Proof-of-Work algorithm")))Finding such a solution, the so-called _Proof-of-Work_ (PoW), requires quadrillions of hashing operations per second across the entire bitcoin network. The algorithm for Proof-of-Work involves repeatedly hashing the header of the block and a random number with the SHA256 cryptographic algorithm until a solution matching a predetermined pattern emerges. The first miner to find such a solution wins the round of competition and publishes that block into the blockchain.
Jing started mining in 2010 using a very fast desktop computer to find a suitable Proof-of-Work for new blocks. As more miners started joining the bitcoin network, the difficulty of the problem increased rapidly. Soon, Jing and other miners upgraded to more specialized hardware, such as high-end dedicated graphical processing units (GPUs) cards such as those used in gaming desktops or consoles. At the time of this writing, the difficulty is so high that it is profitable only to mine with ((("application-specific integrated circuits (ASIC)")))application-specific integrated circuits (ASIC), essentially hundreds of mining algorithms printed in hardware, running in parallel on a single silicon chip. ((("mining pools", "defined")))Jing's company also participates in a _mining pool_, which much like a lottery pool allows several participants to share their efforts and rewards. Jing's company now runs a warehouse containing thousands of ASIC miners to mine for bitcoin 24 hours a day. The company pays its electricity costs by selling the bitcoin it is able to generate from mining, creating some income from the profits.
Jing started mining in 2010 using a very fast desktop computer to find a suitable Proof-of-Work for new blocks. As more miners started joining the bitcoin network, the difficulty of the problem increased rapidly. Soon, Jing and other miners upgraded to more specialized hardware, with high-end dedicated graphical processing units (GPUs), often used in gaming desktops or consoles. At the time of this writing, the difficulty is so high that it is profitable only to mine with ((("application-specific integrated circuits (ASIC)")))application-specific integrated circuits (ASIC), essentially hundreds of mining algorithms printed in hardware, running in parallel on a single silicon chip. ((("mining pools", "defined")))Jing's company also participates in a _mining pool_, which much like a lottery pool allows several participants to share their efforts and rewards. Jing's company now runs a warehouse containing thousands of ASIC miners to mine for bitcoin 24 hours a day. The company pays its electricity costs by selling the bitcoin it is able to generate from mining, creating some income from the profits.
Will Binns
4 years ago