Homework on Mining and Proof of Work - Questions

Blockchain and Bitcoin 101
#4780

Why is it important to make sure that miners spend money (on electricity) while mining?
Miners are in a competition with each other. Meaning a Miner wins the rate by creating the blog that is accepted by the ledger. In addition he will spend money first for creating a blog (electricity) and trying to play by all rules, to improve the chance to have his blog accepted. Therefore the cost of electricity helps to improve the quality of a blog

Why would it be very difficult for someone to go back change a previously added block? Because it has to be “remine” back to the blog where the transaction of a blog wants to be made. With this you have to do all conections again = solving all putzzles (more blogs = hashrate is going up )… Due to the very high costs (eletctricity) this is an not economic approach and almost impossible. Because the longest chain(POW) will be recogniszed in the network, you have to “redue” all new blogs as well… . No way of “catching” up…

How does the network regulate mining difficulty?
By having the miner to find the right nonce in addition with a lower target (only low if difficulty is high) for the created hash (together called puzzle). Only then he will be rewarded with blog reward and transaction fee. Note: With a increasing number of miners, the difficulty is going up as well.

#4781

  1. They are incentives, Its also important to spend money in mining because you will have the higher chance to produce the next block.

  2. Each block has a unique hash which goes with the data they hold, if anything in the data changes so will the hash. If you were to change something in the previous block the link will break for the next and so on breaking the chain.

  3. The difficulty to mining is related to the hash rate of the network. The more miners that are in the network equals to a lower target. Which makes it more difficult to mine.

#4782
  1. Why is it important to make sure that miners spend money (on electricity) while mining?
    This makes them money upfront. it is their investment they will want to be able to have a return on. electricity makes them pay
  2. Why would it be very difficult for someone to go back change a previously added block?
    All blocks are linked together. every block references the previous block hash. If I change data in a block, it changes its hash. So all subsequent blocks need to be rehashed.
  3. How does the network regulate mining difficulty?
    By adjusting the target. the more miners, the bigger the hashrate the easier it is to find the nonce. based on previous block committ times, over the last two weeks, the network adjusts the target
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#4783
  1. To involve effort for the incentive for owning the block and transaction fees
  2. it will change the hashes for the block and all subsequent blocks and it will take a lot of time (1000s of years) to mine all the blocks
  3. By setting a lower hash target when lot of miners are around
#4784

  1. For the POW / proof of work

  2. For few reason, first if a someone does this it would mean that it have to re-mine the rest of the block after it change, but even if he/she/they manage, the “new blockchain” wont be validated by other miners. So it’s not difficult, it is IMPOSSIBLE.

  3. The mpore miners the harder the problem to solve are hard, and the opposite goes as well.

#4785 
1. Why is it important to make sure that miners spend money (on electricity) while mining?
       This means that the BTC was valuable to you and any other miner to spend money (value) on mining it.  Miners will not sell BTC unless they are able to receive equal or more value for the BTC.
2. Why would it be very difficult for someone to go back change a previously added block?
       They would have to try to catch up with the block that is being created now. They would need to out perform all the current BTC miners combined. 
3. How does the network regulate mining difficulty?
       Only one miner will be able to create the next block on the chain buy guessing the right number. The miners have to compete with each other, the greater the difficulty. The more miners the greater the cost to mine.
#4786 
 1.  Why is it important to make sure that miners spend money (on electricity) while mining? 
Spending value to mine insures that miners will not want to sell BTC without 	reviving value in return that is equal to, or greater.  This helps set the value of 	BTC.
 2.  Why would it be very difficult for someone to go back change a previously added block? 
The block with greatest number of transactions is accepted over one with 	lesser. Not only would you have to compete with the entire number of miners,  	but also find enough transaction to put in you block to compete.
 3.  How does the network regulate mining difficulty?
Miners have to compete in guessing the right number to add their block to the 	chain. The more miners creates greater competition. Greater competition 	meant more power (value spent) is needed.
#4787

  1. Why is it important to make sure that miners spend money (on electricity) while mining?
    It is important for miners to spend money on electricity because it motivates them to follow the rules to earn block rewards. This financial investment discourages fraudulent activities, ensuring miners maintain the blockchain’s integrity.

  2. Why would it be very difficult for someone to go back change a previously added block?
    It is very difficult because the hash of each block is based on the transactions within the block, the hash of the previous block, and a nonce (random number). Any change to a previously added block will alter the hash of that block and consequently change the hashes of all subsequent blocks. This requires re-mining all affected blocks, which is computationally impractical and expensive.

  3. How does the network regulate mining difficulty?
    The network regulates mining difficulty by setting a target for the hash. The hash of a block must be lower than this specified target. When the difficulty increases, the target is set lower, making it harder to guess the correct nonce.

#4788

  1. By paying money for electricity, miners are forced into a net loss if they cheat.

  2. It would be difficult because changing one block would require changing every subsequent block.

  3. The network only allows for only one block to be mined every ten minutes.