- By spending money the miners have incentives to follow the rules since they are invested in the mining process.
- If anything is changed in the previous block it would break the link to the next and the following blocks.
- As there are more miners the difficulty to guess the nonce is increased by lowering the target.
- having skin in the game gives them incentives to play by the rules.
- it would take an immense technological advance to be able to change all the links and blocks of the already mined chain to outpace the other miners which keep adding new blocks to the chain in the mean time.
- by lowering the target number. A large amount of miners = low target number. this lowers the probability of guessing a number that is lower and enhances the difficulty
- So they are incentivized. They have spent money electricity and now want to get their BR and get paid BTC
2.They would have to re-mine all the other blocks in the chain to catch up to the current block as new blocks are being created. - The more miners on the network the more difficult to mine. The more difficult the lower the target.
1. Why is it important to make sure that miners spend money (on electricity) while mining?
When mining, they get incentivised from TX fees and Block Rewards, in case the protocol is followed.
2. Why would it be very difficult for someone to go back change a previously added block?
To encourage miners to comply with the protocol. You are better off if you play by the rules than being dishonest.
3. How does the network regulate mining difficulty?
The regulation on mining difficulty is based on the target, which is lower when more people are mining.
Why is it important to make sure that miners spend money (on electricity) while mining?
-It is important because when they spend electricity they are incentive too follow all the rules,because when they dont they will lose money.
Why would it be very difficult for someone to go back change a previously added block?
-Because if you change something in a previous added block,the hash from the block before that completly changes and then that block changes the hash of the block before that and so on.
How does the network regulate mining difficulty?
-the miners have too guess the nonce,the network sets a target wich is low when the difficulty is high and the higher the difficulty the more miners are active.
- When miners spend money on electricity it represents their āskin in the gameā and therefore they are incentivized to play by the rules.
- If someone wants to change or reverse transaction in previous blocks, link between blocks gets broken and also between next blocks.
- If there is a lot of miners mining difficulty rates rises and it getĀ“s harder for miners to guess a nonce, which is in this case very low, and it workĀ“s in the opposite direction.
1.miners pay up front to make sure they provide proof of work.
2.You would have to go and change all of the previous blocks.
3.Guessing the nonce becomes harder as the target gets lowered.
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So it incentives the miners to make more money by getting blockreward and transaction fees . So they want to play by the rules. If they make a bad block it will cost money
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Because the links with each block after will be broken. So you need to restore those links and it would take hundreds of years because you lack the hashpower
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If there are more miners it becomes more difficult to guess the nonce by lowering the target. They want a new block every 10 minutes
- I donāt think this was the original intent of SN but I have not read the White Paper to know this not the case. Iāll do that eventually. I actually think the use of crazy amounts of energy to come up with a solution to a puzzle is not a good idea. Iād like to see some kind of mining app that the miners are forced to use and that app would have a governor so everyone could be a miner in some way shape or form.
- It would require a lot of time and energy. Something a quantum computer might eventually be able to do before people realize what is happening.
- The difficulty affects the target (nonce). The more difficult the lower the nonce. The less difficult the higher the nonce.
- So that they can add value to the process that makes them sell at a higher price than the cost of production.
- Because all hashes are based on the previous hash and there is no way to alter the data without making a mess.
- By regulating the hash rate depending on the number of miners.
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Proof of work. If no money or electricity was spent it would be risk free to try and alter the blockchain. Multiple blocks could also be mined at the same time if it was easy to lay the next block
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Because the hash of every block is based on the hash of previous block so all block coming after will become invalid. You would need to guess the nounce and come up with a low target of the block you try to alter plus all later blocks quicker than the blockchain is growing. Longest blockchain is always chosen by nods.
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If mining becomes to difficult the target number will become higher and easier to guess because more answers will be accepted
- It is because that way it can show POW that the miner did use electricity to work on the hash, which in return they will receive fees as incentive. If they tries to trick the protocal, they will loose money because they broke the rules.
2.If someone tries to go back and change a previous block, the person has to redo all the blocks thats after the block that they tried to change. While they are catching up on the blocks, others already finish hash all the new blocks. It would take trumendous efforts and energy in order to catch up. In theory, this would work, but in reality, this is impossible.
- Difficulty is calculated by hash rate and the target number. The more people mine, the lower the target is, and higher the difficulty become.
- Miners spending money upfront keeps them incentivized towards being a good actor to follow the rules to receive the block reward to recoup the expenses that were spent up front.
- Because the links between each blockchain are special in that they are hashes of hashes, as soon as one piece of data changes then the result of the hash changes which then breaks the chain.
- By adjusting the target, if there are more miners then you lower the target if there are less miners then you increase the target this is done every 2016 blocks.
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Why is it important to make sure that miners spend money (on electricity) while mining?
So they can Recoup their costs, in addition to receiving fee plus BTC mining reward. -
Why would it be very difficult for someone to go back change a previously added block?
All subsequent blocks would have to be re-mined, also expensive. -
How does the network regulate mining difficulty?
With the increase or decrease of miners, network will adjust to a lower or higher target there by increasing or decreasing difficulty. Hash rate.
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It is part of the incentives game and to make sure the miners pay upfront and follow the rules. With such requirement, the miners will be kind of forced to work with honesty so they can earn the block reward + miners fees and get the return on their investments.
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It would be extremely difficult because each blockās cryptographic puzzle is solved based on all transactions in the current block, in the previous blocks and the links connecting the blocks. If one wishes to change the contents of an older block, the newer blocks have to be re-mined (because the block hashes would have changed thus the need to solve new cryptographic puzzles). On the other hand, it would require to solve such puzzles at a high speed or very efficiently to catch up the blockchain that has blocks continuously added to it. The network eventually selects the longest chain. Therefore, even if one has 51% of the hash power, it would be financially infeasible to modify the contents of an existing confirmed blockchain, theoretically speaking. However, practically would be impossible to obtain 51% the hash rate (in bitcoin!) due to financial incentives and risk/reward.
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The network rewards miners if the nonce of a new block is guessed (randomly) and if it is lower than the network set target. When more miners join the puzzle solving (higher hash rate) the network lowers the guessing target, thus increasing the guessing difficulty and vice-versa.
1 because they need to get payed back with block reward and transaction fees, playing by the rules for optimal returns.
2 because it would break the following links between block meaning remining all of the next blocks, which would take years and a couple of nuclear plants.
3 Automatically, when hashing power grows difficulty grows. But there is also a difficulty adjustment, i believe.
- It important as it aligns incentives. By forcing miners to spend money up front it incentivizes them to want to recoup their investment and make a profit by being rewarded with transaction fees and BTC reward (well, up until 21M BTC at least).
- Because the blocks all have the hashes of all previous transactions, hence when you change 1 tiny part of the block the entire hash changes in a huge way, thereby invalidating all hashes in previous blocks as well - this makes it infeasible to go back and rehash all previous blocks.
- By increasing and decreasing the target - higher target = increased probability that the miners hash will be below target = lower difficulty. As more miners start mining, the difficulty ātargetā will get lower (difficulty adjusts every 2016 blocks).
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Why is it important to make sure that miners spend money (on electricity) while mining?
Because it is like an investment. They pay for the electricity and receive a reward at the end of the day.
If they corrupt the network they will loose there blocks. -
Why would it be very difficult for someone to go back change a previously added block?
Because all the blocks have a hash. Change the hash and all the blocks will have to be hashed again. You canāt hash all the blocks again as new blocks are being added every day. -
How does the network regulate mining difficulty?
It depends on how many miners are active. More miners will mean it will be difficult to find the right hash after the right nonce has been guessed.
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Why is it important to make sure that miners spend money (on electricity) while mining?
Because it gives them an incentive to follow the protocol in order to earn money from mining new blocks & transaction fees. Otherwise, they are losing money from spending electricity. -
Why would it be very difficult for someone to go back change a previously added block?
Because each newly mined block is based on and linked to verified computations of previously mined blocks. If one previously mined block is changed, all proceeding blocks are invalidated as well. Subsequently, countless hours of computations and electricity would be needed to re-validate the invalidated chain, making it nearly impossible to catch up the longest and most validated block chain in POW. -
How does the network regulate mining difficulty?
When difficultly is high (more miners present), the target is lowered, making it more difficult to guess the nonce.
- Why is it important to make sure that miners spend money (on electricity) while mining?
Because this way they are investing into the process in order to get the rewards back. It creates a some sort of risk for them that increases responsibility for further action and makes sure that the process runs āāby the rulesāā to avoid losses.
- Why would it be very difficult for someone to go back change a previously added block?
Because every change that is made in a block leads to a change of the previous block and the block after, therefore starting a chain reaction of changes that need to be amended along with the original change. It will take more than a lifetime to change that.
- How does the network regulate mining difficulty?
The more miners are there in the field, the more difficult it will be for miners to guess the nonce, as the zero to target area amplitude will be higher or lower.