What is Head Mining (What is Head Mining)?

What is Head Mining? Editor’s note: This article is from Caicloud Blockchain (ID: cybtc_com), authorized reprint from Odaily Star Daily.

In the past few months, the price of Bitcoin has been steadily rising. Since the beginning of this year, the price of Bitcoin has increased by more than 30% and continues to rise. However, this growth also comes with a series of problems such as price fluctuations and performance degradation of the Ethereum network. In order to better understand the role of this technology in the industry and the impact it can bring to the crypto market, we need to understand some basic concepts to explain how this industry operates. 1. What is Head Mining? What is Head Mining? Simply put, it is to package blocks into a separate data structure and then put them into the blockchain to form a consensus mechanism (i.e., blocks). In other words, when a transaction is successful, it must be written into the block by a validator to obtain confirmation. If there are no validators or nodes participating, confirmation cannot be obtained and off-chain operations cannot be performed. Therefore, each mining operation requires a lot of computational power to ensure its security. So in order to achieve this goal, you need to have enough money to do the necessary security testing, because only after reaching a certain level of security audit can you calculate the valid hash value of the transaction being sent into the block. 2. Why mine? In fact, miners do not want to be “farmers” or “sellers”, but hope to become producers and create value for themselves. 2. When is it Head Mining? Generally speaking, Head Mining refers to a form of rewards provided to users, usually in the form of BTC. These incentive measures are based on the contribution of community members and proof of work. For ordinary players, they only use their own money to purchase mining equipment to ensure that their mining income remains stable. However, because the mining cost of most people is not high and the returns are not stable, many people choose not to consider investment. 3. How to determine the standards for Head Mining? According to traditional mining rules, the minimum threshold for mining pools is 10 ETH. Most exchanges currently have two requirements: 1. All accounts need to submit KYC information, and each account must have at least $10,000; 2. 10,000 ETH can only be stored in one place, otherwise it cannot be exchanged. 3. Anyone can obtain tokens by contacting someone through various channels. 4. All funds will exist on platforms such as wallets, exchanges, forums, etc., and most of the assets can be used for custody. 5. Without additional fees, the system will not process transfers. 6. You may only need to pay a small amount of electricity fees to complete tasks and help apply for rewards, unless you are a programmer, otherwise your efforts will be wasted. In addition, if you do not have other resources to support your friends, your risk tolerance is very low.

What is Head Mining?

Editor’s note: This article is from according to Odaily Star Daily, authorized reprint.

Recently, a new emerging technology called Head Mining has appeared. One of its founders is former JPMorgan executive Steven Cowen. This person is a believer in early Bitcoin participants, and he hopes to learn from it.

However, unlike the Internet, blockchain is an open source, distributed network driven by its consensus mechanism, which allows anyone to create and operate DApps or services on it, and also helps those who do not understand these applications to develop and use them. Building decentralized applications through blockchain is called “Head Mining”.

Although people’s interest in this new technology is growing, for many industries, this is a new entrepreneurial opportunity. For example, in the Google search field, there is a trend that “Ethereum” has become a popular term-because most cryptocurrency projects rely on such platforms.

And large game companies based on blockchain technology like EOS, because their products and services are considered a huge ecosystem, they usually attract more and more investors who think the competition in this field is very fierce.

Therefore, when it comes to Head Mining, people often mention: “What we see now is something that is truly perceived and being paid attention to.” However, as more institutions enter the market and the demand for a broader market gradually increases, this trend becomes more and more obvious. If the Internet is about the exchange of personal information value, then traditional identity verification may also refer to the issue of personal data on the chain. For example, Facebook’s Libra will allow users to directly own their own digital wallet addresses. Similarly, the advertising campaigns of some social media giants may also involve the issue of account holders’ personal information (i.e., login credentials), and may even lead to the loss of users’ private keys.

Nevertheless, traditional identity verification models still have certain limitations, especially in countries outside the United States, where only a few organizations have access to users’ real names. And this difference does not always mean that a person or team only knows a particular thing. “I don’t know if you can find my phone number? If you ask me which company’s executive I am, I will tell you; if you don’t answer, I won’t be able to reply.”

In other words, “our customers are actually ’employing’ others to do business, so we just want to contact other suppliers.” Of course, this is also a long-term investment.

Earlier, Michael Saylor, the largest venture capitalist in the United States, announced the launch of a company called Founder Fund 2. The initial goal of his fund is to raise $500 million for startup investments within 10 years.