Dosh

I have been at xLog for a long time, but I haven't posted anything. The old blog domain has been contaminated and hasn't been migrated yet. I will gradually move it over later~

I briefly learned about the currency and nodes of web3 at noon, only through some content I learned from ChatGPT, there may be some outdated information (most of which has been removed). The images in the article are generated through Midjouryney, so there is no need to worry about copyright issues.

Web3 Currency#

Currency Issuance#

The issuance of new Web3 coins depends on the specific cryptocurrency project. Generally, Web3 coins are issued through Initial Coin Offerings (ICOs) or Initial Token Offerings (ITOs).

In an ICO, the project sells its newly issued tokens to the public to raise funds. Typically, investors can purchase these tokens using cryptocurrencies such as Bitcoin or Ethereum, or fiat currencies. ICOs usually take place within a certain period of time, during which investors can participate in purchases according to their own wishes. If the funds raised during the ICO reach the predetermined target, the project will distribute the newly issued tokens to the investors according to a pre-set ratio.

ITOs are similar to ICOs, but with some differences. In ITOs, the project provides incentives to encourage early participants to purchase tokens. For example, the project may offer higher discounts or reward more tokens to early participants.

In addition to ICOs and ITOs, there are other issuance methods, such as airdrops and token sales. Different projects choose different issuance methods to meet their fundraising and marketing needs. Regardless of the chosen method, investors should fully understand the associated risks and prospects before participating in the issuance of Web3 coins and make cautious decisions.

Uses#

Web3 coins are digital assets built on blockchain technology and typically have characteristics such as decentralization, immutability, and traceability. These characteristics give Web3 coins many uses, including but not limited to the following:

1. Payment: Web3 coins can be used to pay for goods and services, just like traditional currencies.

2. Investment: Due to the high volatility and market value of Web3 coins, many people consider them as investment tools that can generate investment returns through trading and holding.

3. Decentralized Applications (DApps): Web3 coins can be used to support the operation of decentralized applications. For example, smart contracts on Ethereum can use Ether as fuel to pay for transaction fees and smart contract execution costs.

4. Decentralized Finance (DeFi): Web3 coins can be used for transactions and liquidity provision on decentralized finance platforms. For example, decentralized exchanges like Uniswap and Curve on Ethereum support the trading of various tokens.

5. Asset Management: Web3 coins can serve as a form of digital assets for the management and cross-border transfer of digital assets.

Web3 coins can be used in various aspects, and their uses will continue to expand with the continuous development of blockchain technology.

Web3 Nodes#

Nodes are important components of blockchain networks and are mainly responsible for maintaining network operation, verifying transactions, and packaging blocks. Nodes include the following types:

1. Full Nodes: Full nodes are the most basic nodes in a blockchain network. They store the entire blockchain data and can verify the validity of transactions and blocks. Full nodes play an important role in the decentralization of blockchain because they can prevent single point failures and malicious attacks, thereby improving network security and reliability.

2. Miner Nodes: Miner nodes are responsible for verifying transactions and packaging new blocks through computation. Miner nodes need to perform operations such as computation, storage, and network transmission, so they require high computational and storage capabilities, as well as stable network connections. Miner nodes are also important nodes in blockchain networks because they provide computational power and security.

3. Validator Nodes: Validator nodes are a special type of node in a blockchain network. They are responsible for verifying transactions and packaging blocks, which are important for ensuring the security of blockchain consensus. Validator nodes need to stake tokens to participate in the election and can receive rewards from Proof of Stake (PoS). The security and stability of validator nodes have a significant impact on the security and stability of the entire blockchain network.

The security of nodes is an important issue in blockchain networks. Nodes need to have sufficient security guarantees to prevent malicious attacks and other malicious behaviors. The security of nodes depends on multiple factors, such as the scale of nodes, the stability of network connections, and the rationality of security configurations. At the same time, nodes need to pay attention to security risks and avoid attacks and the leakage of sensitive information. Therefore, the security of nodes needs to be comprehensively considered and strengthened during the design, implementation, and operation stages.

Miner Nodes#

What are they#

Miner nodes are a special type of node in a blockchain network that is responsible for verifying transactions and packaging blocks. Miner nodes solve mathematical problems in the Proof of Work (PoW) or Proof of Stake (PoS) consensus mechanisms, verify and package transactions, and create new blocks to receive corresponding rewards.

The main task of miner nodes is to solve mathematical problems in the Proof of Work (PoW) or Proof of Stake (PoS) consensus mechanisms, verify and package transactions, and package them into new blocks. In PoW, miner nodes need to perform a certain amount of computation to find a hash value that meets the requirements, thereby creating new blocks and receiving rewards. In PoS, miner nodes become validator nodes by holding tokens, and they have the opportunity to obtain the right to produce blocks and receive rewards.

Miner nodes play a crucial role in the security and stability of blockchain networks. However, miner nodes also face challenges and issues such as high energy costs and intense competition. Therefore, to encourage more miner nodes to participate in blockchain networks, some blockchain projects have adopted different incentive mechanisms and technological improvements. For example, some projects have adopted PoS algorithms to reduce computational requirements and energy costs for miner nodes. Some projects have also improved blockchain consensus mechanisms, such as blockchain sharding, to enhance scalability and performance.

Can I join#

Becoming a miner node requires technical and resource support, and the following conditions need to be met:

1. Hardware equipment: Miner nodes need to have sufficient computing power and storage capacity, so it is necessary to purchase specialized mining machines or high-performance computer equipment.

2. Network connection: Miner nodes need to have stable and high-speed network connections to ensure timely receipt and broadcasting of information in the blockchain network.

3. Electricity cost: Miner nodes need to run for a long time, so it is necessary to consider electricity costs and device power consumption.

4. Technical support: Miner nodes need to have certain technical support to perform operations such as joining mining pools, installing and configuring mining software.

If you meet the above conditions and have sufficient knowledge and technical support, you can become a miner node. However, it is important to note that mining for many cryptocurrencies has evolved into a professional and large-scale stage, and the profitability of individual mining is not as high as before. Therefore, careful cost-benefit analysis and decision-making are necessary. In addition, different cryptocurrencies have different mining algorithms and methods, so it is necessary to choose the appropriate cryptocurrency and mining method.

Consequences of No Mining#

The following problems may arise if no one is mining:

1. Slow transaction processing: In a blockchain network, transactions need to be verified and packaged before they can be confirmed and recorded on the blockchain. If there are no miners mining and no one to verify and package transactions, the transaction processing speed will become extremely slow or even stagnant.

2. Network security threats: The presence of miners is to ensure the security of the blockchain network because they need to verify transactions and package blocks through computation. If there are no miners mining, the security of the blockchain network will be threatened, for example, there may be malicious attacks such as double-spending.

3. Ineffective incentive mechanism: In many blockchain networks, mining is an incentive mechanism, and miners can receive rewards for mining. If there are no miners mining, the incentive mechanism will be ineffective, which will have an impact on the long-term development and operation of the blockchain network.

Therefore, if no one is mining, the blockchain network will face many problems, including slow transaction processing, network security threats, and ineffective incentive mechanisms. To ensure the security and stable operation of the blockchain network, it is necessary to encourage miners to participate in mining and provide corresponding incentive mechanisms.

How to Mine - Ethereum as an Example#

Ethereum mining uses the Proof of Work (PoW) algorithm and currently uses the "Ethash" mining algorithm. The process of Ethereum mining can be divided into the following steps:

1. Obtain mining software: Mining requires specialized software such as Geth and Ethminer. It is important to note that different mining software supports different operating systems, so you need to choose the software that is suitable for your operating system.

2. Set up a wallet address: Before mining, you need to set up an Ethereum wallet address, which will be your receiving address as a miner. You can use wallet software such as MetaMask or MyEtherWallet to create a wallet address.

3. Join a mining pool: Ethereum mining has evolved into a large-scale stage, and the profitability of individual mining is not as high as before, so you can choose to join a mining pool. A mining pool is an organization where a group of miners collaboratively mine, which can improve mining efficiency and profitability. Some well-known mining pools include Ethermine and F2pool.

4. Start mining: After launching the mining software, you can start mining. Miners verify transactions and package blocks through computation. Once a new block is mined, miners can receive a certain amount of Ether as a reward.

It is important to note that Ethereum mining has high difficulty and requires high computational power and electricity costs, so careful cost-benefit analysis and decision-making are necessary.

Furthermore, Ethereum has completed the upgrade to version 2.0, transitioning from Proof of Work (PoW) to Proof of Stake (PoS), and no longer supports Ethereum mining.

Proof of Stake#

What is it#

Proof of Stake (PoS) is a blockchain consensus mechanism that serves as an alternative to the Proof of Work (PoW) algorithm. In PoS, instead of competing for the right to validate blocks with a large amount of computational resources, nodes are selected to validate and package blocks based on the amount of tokens they hold, using token ownership as voting power.

In PoS consensus mechanism, nodes need to stake tokens, which means locking a certain amount of tokens in their wallets as their stake or "stake". By staking tokens, nodes can gain the right to produce blocks and receive rewards.

Compared to PoW, PoS has lower energy consumption and higher scalability because it does not require a large amount of computational resources to validate transactions and package blocks. At the same time, PoS also has a certain degree of decentralization, as it does not require concentration in a few large mining pools, making it easier to achieve widespread participation of nodes.

It is important to note that PoS also has some issues and risks, such as the potential for token concentration, which can lead to fairness and centralization issues. Additionally, node security and stability should be considered. Therefore, when choosing a blockchain consensus mechanism, it is necessary to consider various factors and choose the most suitable consensus mechanism.

Detailed Introduction#

In PoS, instead of performing complex calculations like PoW, the algorithm selects the next block producer based on the amount of tokens held, enabling the validation and packaging of blocks.

The specific process of PoS is as follows:

1. Staking tokens: In PoS, nodes need to stake a certain amount of tokens, which means locking them in their wallets as their stake or "stake". By staking tokens, nodes can gain the right to produce blocks and receive rewards.

2. Selecting block producers: In PoS, every node in the blockchain network has the right to participate in the selection of block producers. The selection process is based on voting with stake, where nodes with more stake have more voting power.

3. Block validation: Once a block producer is selected, it needs to validate transactions and package them into a new block. Other nodes will then validate and confirm the block. If the block is confirmed, the transactions in the block are recorded on the blockchain.

4. Reward distribution: After successfully packaging a block, the block producer receives a certain amount of tokens as a reward for its validation and packaging work.

Compared to PoW, PoS has lower energy consumption and does not require extensive computation, making it more cost-effective and environmentally friendly. Additionally, PoS has higher scalability as it does not require a large amount of computational resources to validate transactions and package blocks. Furthermore, PoS is more conducive to widespread participation of nodes, as it does not require concentration in a few large mining pools.

However, PoS also has some issues and risks, such as the potential for token concentration, which can lead to fairness and centralization issues. Additionally, node security and stability should be considered. Therefore, when choosing a blockchain consensus mechanism, it is necessary to consider various factors and choose the most suitable consensus mechanism.