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It is important to make sure miners spend money on electricity while mining because miners use a lot of electricity which is is really expensive. Miners have the incentives of transaction fees and block rewards in order to make a profit. This process makes it so if a miner tries to cheat the system then will end up losing money since they have to pay electricity and claim no reward.
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It is difficult to go back and change a previously added block because it breaks the bonds between the other blocks in front of that block as well since the hashes change once information from one block changes. In order to keep mining the miner would have to fix the blockchain he had broken and catch up to blocks being added in order to keep mining making it almost impossible to do.
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The network regulates mining difficulty by making the target lower when there are more miners so they have to guess more to get the right number and when there are less people mining the target is higher making it less difficult to get the right number in order to keep the block building time around 10 minutes.
1 - spending electricity secures the network and assure that the cost of hacking the blockchain or adding an illigetimate transaction is very high.
2 - if you went back and previous added a block you that would break the links between each blockchain because they are connected by the hash of the transactions and previous hash. Then you would have to find the correct nonce for the block you added and all subsequent blocks (including new ones being added). This would take a enormous amount of time and energy. Plus since only the loggest blockchains are accepted it would be very unlikely you could keep up.
3 - The difficultly is regulated by lowering the target number the hash(previous hash, transactions, nonce) MUST hit for the block to be accepted. The lower the target number the more attempts required to find an acceptable nonce.
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Electricity costs incentivises miners to continue mining in order to reap rewards which will in turn pay for their bills. It also advocates for miners to play by the rules, because if they don’t, they won’t get their rewards - which means mining will not be a sustainable venture.
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If they were to change the previous added block, not only would they have to re-hash the block, but they would also have to re-hash all the previous blocks which is a process that can take an infinite amount of time.
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It regulates mining difficulty by altering the nonce target value. More miners create a lower target, meaning the target has a lower range of possibility therefore making it harder to guess.
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Miners must first spend electricity to secure the network before being rewarded to keep them honest, so they don’t attempt to cheat the network with attacks such as double spend. If they do not legitimately mine blocks, they will not be rewarded and will lose their initial spend.
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It would be extremely difficult to go back and change a previously added block because each cryptographic puzzle is based on block before that, which has it’s puzzle based on the block before that and so on. To change any previous block breaks the chain of links and you would need to remine all previous blocks in the chain. With every other miner on the network creating new blocks every 10 minutes this is virtually impossible as it would take hundreds/thousands of years and possibly cost billions.
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The network regulates mining difficulty through block rewards halving approximately every four years, so it becomes more difficult to mine. In this mechanism it is assumed transaction fees increase as the network grows and this accommodates for the lower block reward. The network also regulates mining difficulty through a difficulty adjustment in the POW algorithm which adjusts every two weeks. The difficulty to mine blocks will increase or decrease in accordance with the mining hash rate of the network as a whole.
- Why is it important to make sure that miners spend money (on electricity) while mining?
it give them the incentive to mine correctly in order to receive compensation to cover the cost of electricity.
- Why would it be very difficult for someone to go back change a previously added block?
All old blocks would need to be re-minered while new blocks are continuously being added to by other miners thus making it almost impossible.
- How does the network regulate mining difficulty?
The difficulty of solving the puzzle changes with the number of miners. When more are mining the puzzle gets harder to solve.
- By spending money they are very likely to recoup what they have spent by being rewarded for mining the block and the transaction fee. So they are starting from a place of loss and trying to get the money back and then make profit on top of that. If there was no way of spending money initially then there would be no reason to mine.
- By changing the previous block you have placed yourself between a rock and a hard place. By changing one block you have changed all the blocks after and therefore you have to remine everything in front and catch up with the continuing mining process. That requires a shit tonne of power and basically you can’t do it.
- By lowering the target difficulty of hitting within the target increases - when there is a lot of competition the target is lower thus meaning a lot more power must be spent.
- It is important as this a way to make sure they follow the rules in order to get incentivised once the block is mined. It is in their interest to make sure the network is secure, if not all the invalid blocks will not be verified and they will lose money (on the electricity spent) without earning block rewards and fees.
- Because if you change one block all the blocks before and after will be changed and you will have to mine all of them all over again.
- The network can lower the target which will make it more difficult to guess the nonce. It can also increase it which makes it easier for the miners.
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Why is it important to make sure that miners spend money (on electricity) while mining? Spending expenditure to mine incentives the miner to work towards earning block rewards and fees.
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Why would it be very difficult for someone to go back change a previously added block? Any changes to perviously mined blocks offsets all future blocks. Block consensus would be thrown off and invalidate their mined blocks additionally they would have to outpace the entire network to achieve the longest chain.
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How does the network regulate mining difficulty? more miners competing for a given block lowers the threshold of the hash functions specific target. In other words the target range for solving a block reward becomes smaller.
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It is important to make sure that miners spend money while mining so that they have “skin in the game.” It ensure the integrity of the blockchain. If mining was free it would be easier to game the system. Because it costs money to mine it disincentives cheating or gaming the system. In other words it is more profitable to do the right thing than to to cheat/manipulate because it costs more to cheat/manipulate than to do right.
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It’s very difficult to go back to change a previously added block because it would require a tremendous amount of time and energy (electricity) to re-calculate the hash once data is changed. Any change in the contents of a previous block will necessitate a recalculation of the hash of that previous block, which in turn will necessitate a recalculation of the subsequent blocks. It has a exponential cascading effect.
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The network regulates mining difficulty by the inverse relationship between number of miners and the target number - the higher the number of miners the lower the target number; the lower the target number the higher the difficulty of calculating the correct target hash number.
[quote=“ivan, post:1, topic:8439”]
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Why is it important to make sure that miners spend money (on electricity) while mining?
This is important because in this way Miners have to spend money in order to get payed. This is an incentive for the system not to cheat, as it becomes very expensive for the miners to re do the blocks that would eventually want to be altered. -
Why would it be very difficult for someone to go back change a previously added block?
Because they need to change the block and then redo all of the blocks that were generated ahead of that one. This is at the same time expensive, time consuming and a competition against other miners. -
How does the network regulate mining difficulty?
The network regulates mining difficulty through incentives. It is a question of supply and demand. If there are many miners and few transactions it will be difficult and expensive. If there are many transactions and few miners, it will become easier and cheaper.
- POW requires electricity cost to prove that work has been done
- All previous blocks would need to be remined which is practically impossible
- over time, the more miners around, the more difficult mining becomes
- Spending the electricity is the motivation to try and solve the blocks for the rewards
- Once you change a previous block it disrupts the hashes in the blocks mined after
3.By the hash rate the higher the rate the more difficult the blockbis to mine
- By having skin in the game, the miners are motivated to follow the rules to get their money back and make a bit of profit.
- Because it would mess up all the blocks that come after it. They would need to then re-mine the messed-up blocks and catch up to the current blocks mined. This would be extremely difficult since they would have to mine at a much faster rate than the fastest miners and would be spending lots of money to do so which is essentially impossible.
- The more hash power, the lower the number must be to complete the block. A lower number increases difficulty of guessing the correct nonce.
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Spending money on electricity incentivizes miners to play by the rules and stay honest. If they try to deviate they will not be rewarded and will end up losing money.
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It would be difficult to change a previous block as each block is linked by the hash from the previous one. If one block were changed, then all following blocks would require changing. As blocks are being continually added, huge hashing power would be required and it would almost be impossible to keep up.
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Difficulty level is regulated by the volume of miners. The more miners that are mining, the greater the difficulty level and vice versa. When the difficulty level is high, miners have to guess more often.
1 Why is it important to make sure that miners spend money (on electricity) while mining?
In this way they prove that they have completed work to hash the next block. Additionally this makes it more difficult to someone to hack the previous block and acts like security.
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Why would it be very difficult for someone to go back change a previously added block?
One has to use computational energy to reguess all hashes and links between the blocks after the on they are trying to change. This takes time and meanwhile new blocks are already appended which adds to the difficulty of changing. -
How does the network regulate mining difficulty?
When there are more miners the system chooses a lower nonce number which is more difficult to guess the nonce.
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Why is it important to make sure that miners spend money (on electricity) while mining?
Once the miners has spent money first in their mining, they would want to play by the rules of the games to make money back from the mining. The will help the network to be more secure. -
Why would it be very difficult for someone to go back change a previously added block?
When the transaction in a previously added blcok is changed, a new hash will be created. This new hash is not in syn with the blocks that are created after this previous block. In order for the amended previous block to be accepted by the network, the miner has to remine all the blocks after it, which is impossible since we always start with the longest chain of blocks. -
How does the network regulate mining difficulty?
When there are many miners, the target will be lowered, whcih means that the probability of them choosing a nonce is lower, thus making the mining more difficult.
- By spending money on electricity miners are incentivized to follow the rules.
- Because then he would have to mine all the blocks ahead faster than everyone else.
- More the miners, greater the difficulty and hence more hash power.
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Why is it important to make sure that miners spend money (on electricity) while mining?
That is the investment that the miners have to make in order to participate in the earning process and follow the rules - spending all that energy is not worth of breaking the rules (not getting incentives back). -
Why would it be very difficult for someone to go back change a previously added block?
If any data in the previous block is changed, so is the hash. This means that the prev. hash in the next would be different and the ‘chain’ is hence broken. -
How does the network regulate mining difficulty?
By defining a target according to hash rate: the more miners the harder it is to hit lower than the target.
- Why is it important to make sure that miners spend money (on electricity) while mining?
It keeps them honest, as they pay for electricity upfront so thus they are incentivized to recuperate their costs by acting as good citizens. - Why would it be very difficult for someone to go back change a previously added block?
They would have to solve the hash for the previous block and then solve the hash for each following block with their changes ensuring their blockchain is the longest and accepted by the public, this is almost impossible - How does the network regulate mining difficulty?
The target is set by the amount of people mining, as more people mine the target gets lower, making it more and more difficult to solve. The same happens in reverse as less and less people participate as miners on the network
1. Why is it important to make sure that miners spend money (on electricity) while mining?
It keeps miners honest to qualify to earn blockchain rewards which they can use to cover their cost and keep the profit.
2. Why would it be very difficult for someone to go back change a previously added block?
It would be virtually impossible because you would have to change the hash of the prior calculation.
3. How does the network regulate mining difficulty?
Mining difficulty is managed by adjusting the target.