cliffbjanger on Nostr: mining is incredible Mining, through the "Proof-of-Work" algorithm, is a crucial ...
mining is incredible
Mining, through the "Proof-of-Work" algorithm, is a crucial component for bitcoin to function as a global, borderless, secure, uncensorable, and fair form of currency where everyone is treated equally, regardless of where they happen to be born. No other cryptocurrency possesses these characteristics, and this is what makes bitcoin unique. The decentralized structure of the bitcoin network, with nodes and miners, ensures that there will never be more than a total of 21 million bitcoin; it is a form of currency that cannot be inflated. Bitcoin miners around the world purchase large amounts of energy, which they use to power specialized hardware to secure a share of the total. From its inception in 2009 until around 2140, bitcoin is in a distribution phase. The total supply will be distributed, in the form of gradually decreasing subsidies, to miners who help write transactions into the blockchain.
Miners participate in something that resembles a lottery. Those who produce a hash with a low enough number are allowed to write the next batch of transactions into the blockchain and are rewarded with transaction fees and the aforementioned subsidy. It is precisely this lottery that makes bitcoin uncensorable, as it is random who wins the right to write transactions. The only way to influence the probability of winning is by putting in more work in the form of energy. Vladimir Putin may be able to order Russian miners to refuse bitcoin transactions going to addresses controlled by Navalny's organization. However, as long as there are enough miners outside of Russia's borders who accept transactions that pay fees, the attempt at censorship is futile.
In this system, Putin and I play by the same rules.
Mining, through the "Proof-of-Work" algorithm, is a crucial component for bitcoin to function as a global, borderless, secure, uncensorable, and fair form of currency where everyone is treated equally, regardless of where they happen to be born. No other cryptocurrency possesses these characteristics, and this is what makes bitcoin unique. The decentralized structure of the bitcoin network, with nodes and miners, ensures that there will never be more than a total of 21 million bitcoin; it is a form of currency that cannot be inflated. Bitcoin miners around the world purchase large amounts of energy, which they use to power specialized hardware to secure a share of the total. From its inception in 2009 until around 2140, bitcoin is in a distribution phase. The total supply will be distributed, in the form of gradually decreasing subsidies, to miners who help write transactions into the blockchain.
Miners participate in something that resembles a lottery. Those who produce a hash with a low enough number are allowed to write the next batch of transactions into the blockchain and are rewarded with transaction fees and the aforementioned subsidy. It is precisely this lottery that makes bitcoin uncensorable, as it is random who wins the right to write transactions. The only way to influence the probability of winning is by putting in more work in the form of energy. Vladimir Putin may be able to order Russian miners to refuse bitcoin transactions going to addresses controlled by Navalny's organization. However, as long as there are enough miners outside of Russia's borders who accept transactions that pay fees, the attempt at censorship is futile.
In this system, Putin and I play by the same rules.