What is the principle of virtual currency mining? Do you know it?

Virtual currency mining (also known as cryptocurrency mining) is the process of generating new coins by solving complex mathematical problems to verify transactions and add them to the blockchain. The mining process requires a lot of computing power and electricity resources. In the blockchain network, each block contains a set of transactions. The task of the miner is to find a hash value that meets specific conditions through calculation competition. This value is a digital signature of a specific length used to verify the validity of the block.

The following are the basic principles of virtual currency mining:

1. Transaction packaging: Miners pack the pending transactions into a block. This block contains transaction data, the hash value of the previous block (a link to form a chain), and a random number (called "nonce").

2. Proof of Work: Miners try to generate a hash value that meets a specific difficulty by constantly changing the value of "nonce". This hash value must meet specific requirements, such as the first few characters must be 0.

3. Competitive solution of hash value: Miners compete with each other, and whoever can calculate the hash value that meets the requirements the fastest will get the right to add this block to the blockchain.

4. Rewards: As a reward for verifying transactions and adding blocks to the blockchain, miners usually receive newly generated virtual currency (such as Bitcoin). In addition, miners also receive transaction fees as an additional reward.

5. Verification and propagation: When a miner successfully finds a hash value that meets the requirements and generates a new block, the block will be sent to the entire network. Other miners will verify whether the block complies with the rules. If the verification passes, the block will be added to the blockchain.

Through these steps, the virtual currency network maintains security and integrity while ensuring the legitimacy of transactions.