Inner Mongolia will ban Bitcoin mining. What message does this send?

This may cause the entire mining industry to undergo some form of transformation.

Banning mining activities in Inner Mongolia should not have a significant impact on the network hashrate, as miners will simply find a new home for their mining rigs either in another province in China, or in the EU or North America.

This also means that since miners in Inner Mongolia mainly use coal, a larger proportion of the mining industry in China will use renewable energy. As the rainy season begins in May, many miners in Inner Mongolia will move to Sichuan at that time. Bitcoin mining

The Bitcoin system consists of users (users control wallets through keys), transactions (transactions are broadcast to the entire Bitcoin network), and miners (generated at each node through competitive calculations* The blockchain is a distributed public and authoritative account book that contains all transactions that occur on the Bitcoin network.

Bitcoin miners manage the Bitcoin network by solving the problem of a proof-of-work mechanism with a certain amount of work, confirming transactions and preventing double spending. Since the hash operation is irreversible, it is very difficult to find the random adjustment number that matches the requirements, requiring 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 by calculating the hash value that the requirements (the computational goals required by Bitcoin) are indeed met, then the data block is valid and other nodes will accept the data block.

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. After confirmation, Transactions will be packaged into data blocks, and the data blocks will be 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.

Mining is the process of increasing the money supply of Bitcoin. Mining also protects the security of the Bitcoin system, preventing fraudulent transactions and avoiding "double spends", 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.

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 effort, is called "proof of work". The algorithm's competition mechanism and the winner's right to have the transaction recorded on the blockchain ensure the security of Bitcoin.