What Does Virtual Mining Mean (Concept of Virtual Mining Machines)

What does virtual mining mean? What does virtual mining mean? What does it mean, and why is it needed? In Bitcoin, the currency is called “inflation” because people believe that the supply of this asset can increase over time. However, only a small number of countries have accepted these value storage methods. Therefore, due to the characteristics of Bitcoin, such as non-transferability, its price is also difficult to maintain stability.

The meaning of virtual mining is the process of mining digital tokens through computer algorithms. But this process is not a specific function of the blockchain—for example, calculating a fixed quantity to obtain certain encrypted data or a new record.

If you want to create a system (such as Ethereum), you first need to find related nodes and software clients to be able to run the program; otherwise, they will not be able to access the blockchain database. In order to prevent attackers from entering the network and exploiting vulnerabilities for rewards, anyone can use smart contracts to build code.

When you want to control your private keys, you must use a wallet, computer, or other hardware devices, so that you can achieve zero trust and manage your account without relying on third parties, while ensuring the security of funds.

Does this sound a bit complicated? But actually, it’s simple: If you have a nonexistent cypherpunk account or are an influential person, you can deposit a certain amount of bitcoin and some other coins in your private bank anytime, anywhere.

Concept of Virtual Mining Machines

Editor’s note: This article is from BlockBeats (ID: 0x26), authorized to be reposted by Odaily Star Daily.

After the halving of Bitcoin, the mining industry has undergone major changes. The new generation of high-performance ASIC mining hardware represented by Antminer S9 has entered the public’s eyes. As more and more blockchain companies begin to pay attention to the development trend and future application scenarios of this technology, people’s understanding of this new technology is becoming more and more profound. According to Chain News reports, there are currently many concepts of “virtual currency” in the market, including Bitcoin, Ripple, and other digital cryptocurrencies, as well as various privacy currencies, etc. All of these are related to blockchain. On October 14, 2017, under the guidance of the Yuhang District Government of Hangzhou City, and hosted by the Shenzhen Information Service Industry Blockchain Association, China’s first Industrial Internet Conference was officially held. During the conference, the thematic forum “Consensus Mechanism-Industrial Value Connection” attracted many industry practitioners and experts to participate in the discussion. “Based on this core idea, my country will accelerate the research and development of 5G technology and create a number of demonstration projects with international competitiveness.” Regarding this topic, we interviewed Mr. Wu Jihan, co-founder of Bitmain, and his team member, Wang Feng.

Wu said that the current problems in the blockchain market are inefficiency, high cost, and susceptibility to fraud. Another major problem is the insecurity of data centers and resource monopolies. “Cloud computing + big data” and “artificial intelligence” are also technical problems that need to be solved. But if there are no problems such as low concentration of computing power, weak storage capacity, or slow processing speed, it is difficult to form a large-scale market demand. Therefore, some so-called large-scale technology giants may also try or layout in this field. From a technical point of view, blockchain technology itself is a tool that can promote the entire economic activity and social progress. However, due to its immutability and decentralization, data isolation is very serious, so many times, there will be similar situations, such as malicious attacks and vulnerabilities in certain games, which make many people unable to obtain sufficient information to support the operation of the system and generate profits.

However, we can also observe that during the initial stage of the development of blockchain technology, most investors did not realize that any innovative product could bring such huge profit opportunities. For example, recently Vitalik Buterin publicly supported a new algorithm called “zk-SNARK zero-knowledge proof” – Zcash. At that time, V God said that he sold his native token shortly after holding the token, and he himself did not buy it, and later found that his token was not actually a circulating thing.