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So that they have to put something up to be apart of the network in the hope that the what they pay for electricity will incentivise them to do honest pow for the reward.
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every block has the previous blocks hash hashed into its own hash which contains all the data in the block so if anything where to change in a previous block then the hash of that would change causing the previous hash on the next to change breaking the integrity of the chain.
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The network regulates mining difficultly by using a thing called a target which is a number that sets how small the hash of the next mined block has to be in order for it to be a valid block. if the target is low the difficulty will be hard and easy when the target is a high number.
- Continuous cost of electricity is is punishment and thus earned block rewards + transaction fees are incentive to be honest miner.
- It would take long time to rewrite all the blocks while other miners are producing continuously new blocks to the chain.
- Number of miners reflects on required target which is lower and more difficult to solve. Works vice versa too.
- The only reason that this system exists is to make miners spend money on electricity. This is how miners are incentivized so that they recoup the money, making profit on their losses.
- Changing a transaction in an accepted block will break the link to the next block because the puzzle was based on the contents of that block. The change will also break the links to all following blocks. In order to correct the puzzle, the block that holds the modified TX and all following blocks will have to be re-mined which is practically impossible. The difficulty of the puzzle is proportional to the hash rate. The more people that are mining the more difficult it is to solve the puzzle. It would take thousands of years to try to solve the puzzle by yourself if you change one of the TXs in an accepted block because you will need to use your own hash rate.
- To figure out the puzzle, the only thing the miners are doing is guessing the number of the random nonce. The hashed number has to be lower than a specific threshold. The target is a number that depends on the difficulty of the network. The more miners on the network the lower the target number will be. The lower the target number the more difficult it is for the miner to guess the nonce.
- They are thus incentivized to play by the rules and hash faster than the other miners, otherwise they lose money.
- The chain of block hash dependencies. Mining then must be done by tampering entity and that entity alone cannot catch up unless they have 51% of hashing power which is practically impossible (the longest BC is chosen as truth)
- The amount of miners is inversely proportional to the target value, therefore directly proportional to difficulty. I still dk why it does that though, only perhaps to reduce chance that miners with lots of hashing power win easily, if that makes sense.
• Why is it important to make sure that miners spend money (on electricity) while mining? Because without a cost to the miner to add blocks to the blockchain, the blocks can be easily changed. The fees + block rewards are an incentive for the miner to play by the rules. The cost of mining is a disincentive to cheat.
• Why would it be very difficult for someone to go back change a previously added block? Because it takes take time and money (electricity) to compute valid nonces for all the affected blocks. Meanwhile, the valid blockchain is still growing, meaning the fraudulent miner would need to spend more time and money.
• How does the network regulate mining difficulty?
o The mining difficulty is proportional to the hash rate of the network. The higher the hash rate, the higher the difficulty.
o The difficulty is also adjusted so that a block is added roughly every 10 minutes.
It is important that miners spend money on electricity in order for them to not cheat because by cheating they will loose money ( incentive ).
Change previously added block involve a crazy amount of difficulty to mine the following block.
Mining difficulty is regulated by the nonce target.
- Why is it important to make sure that miners spend money (on electricity) while mining?
Through the process of mining, the miners earn money through block rewards and transaction fees. They are incentivized to play by the rules to receive their reward. If they don’t play by the rules, they will not receive the rewards, still pay the electricity spent with proof of work, and therefore will lose money. Spending money on electricity ensures that miners are not malicious actors but play by the rules, because acting maliciously would inevitably lead to a loss of money (no reward from the network + electricity cost). This is the beauty of PoW already proposed by Satoshi Nakamoto in his whitepaper in 2008.
- Why would it be very difficult for someone to go back change a previously added block?
If any block is modified, even in the most tiny way, the hashes of all the subsequent blocks will be completely changed and the chain will be broken. This malicious actor would then need to mine again alone every block in the chain following the modified block, while other blocks are created by the miners in the same time, which is unfeasible.
- How does the network regulate mining difficulty?
Mining difficulty is adjusted in function of the total hash rate of the miners in the network, to keep a block mined every 10 minutes or so. As the network hash rate is broadly rising over the years, so is the difficulty.
It’s important for the miners to spend money so that they won’t cheat. They only get rewards when everything is perfect. No sense spending money if you want to try and cheat the system, it will cost more than doing everything right and getting the reward.
It would be very difficult to change the previous block because it would throw every block out of sync. Due to the previous hash being a part of the hash of the current block, and so on and so on.
The network regulates the mining difficulty by taking into consideration the amount of miners. The more miners the more difficult. The more difficult the lower the target. Then It’s more difficult to guess the hash.
1, It maintains the integrity of the blocks being added. There is a cost to mine the block and its more expensive to cheat the hashing than to simply mine and try to collect the reward.
2, To try and go back and alter a block changes all the hashes and therefore means you would need to re-mine every block going forward to create a new correct chain and catch up to the current blocks. Virtually impossible to do.
3, Each combined hash must produce a nonce value that is lower than a defined Target value. The smaller the target the higher the difficulty involved hashing the correct or winning nonce, the higher the target the lower the difficulty in finding the correct nonce.
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Because it makes the miners to have something to lose if they don’t mine according the rules. If they try earn money dishonestly, their block will be rejected and the electricity cost lost. Following the rules they can eran more, and easilly.
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Because it would change the later hash blocks creating another chain that no one else would follow as the network always follows the longest chain. You should re-create a longer chain catching up all the later blocks. Almost impossible. That’s what guarantees the immutability and integrity of the blockchain.
3.As more people is mining, lower is the target and mining more difficult. The miner capacity continuously grows.
- The expense of electricity represents the mining investment, and is an incentive to correctly follow the rules.
- Any changes to previous blocks will break the link to subsequent blocks.
- The more the miners, the lower the target, the more difficult to guess the nonce.
The less the miners, the higher the target, the less difficult to guess the nonce.
- This provides incentives for the miners to follow the rules.
- Because you have to spend the electricity to mine the block you want to change along with every block after. While you are trying to mine your block other blocks are being mined every 10 minutes.
- By adjusting the target nonce to regulate the average time it takes to mine a block.
- Miners spending money on electricity while mining ensures they are incentivized to compensate the loss and play by the rules. If they cheat, they spend money on electricity and get no reward.
- Any modifications to a previous block causes the hash value of that block and each ensuing block to change. This makes the entire blockchain to become different from the changed block onward. Other nodes will notice this and the bad actor now has spent a very large amount of energy and funds to change something everyone else sees as invalid. Only by controlling 51% of the miners would the bad actor be successful.
3.Target number is low when there are many miners making guessing the nonce more difficult. If less miners are mining, guessing the nonce will be made easier due to a higher nominal target value.
- It is important for miners to spend money on electricity so they are incentivized to play by the consensus rules when mining so they can pay the electricity bills.
- It is very difficult for someone to go back to change a previously added block because this change will change that block hash that will then impact any blocks that follow and invalidate them. Those blocks would then need to be mined again what would take a lot of time. Only the longest chain is accepted by the network.
- Network regulates mining difficulty by lowering and increasing the target. Higher difficulty means lower target. Lower difficuty means higher target.
It makes sure that the miners do their work correctly so that the blockchain continues, since they want to regain their money with the inflation reward and fee’s. Also if you want to change something on previous blocks to doublespend money for example, it wont be physically possible because of all the energy you have to use to remine the following blocks.
Answer 1 + the hashes of the blocks in the chain are partly based on the hashes of the previous blocks. So for example: If you change a transaction of a block, what happens is that first you need to find the correct nonce again to make the block valid. After you find it your hash changes and the next block becomes invalid because it is based on the previous block hash that you just changed. Because of that you have to find again a new nonce and create the correct hash for the block after and so on. It is practically impossible to do that because of the amout of energy required to mine like that.
By lowering the target number depending on how many people are mining
Why is it important to make sure that miners spend money (on electricity) while mining?
Because the miners get block rewards (inflation) and transaction fees as a way of incentifying them for validating the transactions and adhering to the rules.
2. Why would it be very difficult for someone to go back change a previously added block?
Because it would change all the hashes of the other blocks, notifying the network, which would then reject the change.
3. How does the network regulate mining difficulty?
By lowering/increasing the target nonce. The lower the target, the harder it is to mine and be accepted.
- Because when there is money spend before receiving the prize we can be sure that miners do not cheat beeing scared of loosing money spend for electricity
- Changing the block is practically impossible, someone would have to mine all blocks placed after changed block before everyone else mine new blocks
- It means that the higher the target is the lower difficulty because of increasing numer of possibilities from 0 to target
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Why is it important to make sure that miners spend money (on electricity) while mining?
Minors need to solve a cryptographic puzzle in order to ensure proof of work and have their block added to the blockchain. The cost of this in electricity ensures that the minors are honest in their task as any dishonesty would cost them the money on electricity and would deny them of any reward in BTC. -
Why would it be very difficult for someone to go back change a previously added block?
Due to the fact that the puzzle and the link would then be broken. Any change to a block that has been appended to the blockchain would have a mathematical effect on the puzzle which would then break the previous and future links. -
How does the network regulate mining difficulty?
The difficulty of mining is directly related to the hash rate. The more minors, the more difficult it is to solve the mathematical puzzle of POW.
1- being financially committed, incentivize the miners to follow the rules
2- it demands a lot of hashing power
3- the more hashing power there is in the working to solve the puzzle, the protocol increases/adjust the difficulty, so you dont get new blocks too quickly
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By ensure that miners spend money they have an incentive to play by the rules and get a reward when creating a new block that can be added to the blockchain.
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If any change is made in a previous block, the hash of the block changes and the hashes of the blocks after that one also change. This way there is a need to mine every block again and also the new one’s created. This operation will take forever and the electricity spent is huge, making the reward almost existent.
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The more people mining the higher the difficulty, and this is done by lowering the target number.