MERC Net

#Merc #水星 In computer terminology, the term 'token' has two meanings: a small tool for authorized users, or a fixed string that verifies user identity. A token is a unit of digital value in cryptocurrency, with built-in programmable potential. In addition to economic attributes, tokens can also be used to build software, and can be implemented for identification, honorary identities, identification tools, asset quantification metrics, system certifications, and system protection tools.

1. Payment Tokens

Payment tokens are synonymous with cryptocurrency and do not have any other functions or links to other development projects. In some cases, tokens may only develop necessary functions and become a means of payment over time. 2. Utility Tokens

Utility tokens are designed to provide digital access for applications or services.

3. Asset Tokens

Asset tokens represent assets, such as participation in real entity profits, company shares, or rights to receive dividends or interest payments. In terms of their economic function, tokens are similar to stocks, bonds, or derivatives.

#Merc The NFT we often mention stands for non-fungible Token, which is called 非同质化通证 in Chinese. The tokens we commonly see (such as BTC, ETH, etc.) are fungible; there is no difference between each BTC, and they can be exchanged and divided. The important feature of NFTs is that each NFT has a unique and singular identifier, making them non-interchangeable, with the smallest unit being 1 and indivisible.

NFTs can be applied in many different fields. They are especially often used to create various collectibles. At the same time, there are CryptoKitties and crystals, dragons, pandas, dogs, trading cards, stamps, Pokémon, and so on. In addition to collectibles, NFTs are also an important development in the gaming industry. Players can create individual objects, such as clothing, weapons, or equipment.

#Merc What exactly is computing power? Computing power (also known as hash rate) is a unit of measurement for the Bitcoin network's processing capability. It refers to the speed at which a computer (CPU) computes the output of a hash function. The Bitcoin network must perform intensive mathematical and cryptographic operations for security purposes. For example, when the network reaches a hash rate of 10Th/s, it means it can perform 10 trillion calculations per second.

In the process of obtaining Bitcoin through "mining," we need to find its corresponding solution m, and for any sixty-four-bit hash value, there is no fixed algorithm to find its solution m, which can only rely on the computer's random hash collisions. The number of hash collisions a mining machine can perform per second represents its "computing power," expressed in hash/s. This is known as the Proof of Work (PoW) mechanism.

Security threats are the most significant issue that blockchain has faced so far. Among them, blockchains based on the PoW consensus process primarily face the 51% attack problem, where nodes that control more than 51% of the network's computing power have the ability to successfully tamper with and forge blockchain data. Taking Bitcoin as an example, statistics show that the computing power of large mining pools in China accounts for more than 60% of the total network computing power. Theoretically, these mining pools can collaborate to implement a 51% attack, thereby achieving double spending of Bitcoin.

Although the actual cost required to control 51% of the network's computing power far exceeds the benefits of successfully carrying out an attack, the security threat of a 51% attack always exists. The PoS consensus process partially addresses the 51% attack issue, but it also introduces the N@S (Nothing at stake) attack problem during block forks.

Researchers have proposed partially solving the 51% attack problem by constructing PoW consensus algorithms that simultaneously rely on high computing power and high memory, but more secure and effective consensus mechanisms await further in-depth research and design.

What does proof of work specifically refer to in blockchain?

Proof of work can be simply understood as a certificate used to confirm that a node has performed a certain amount of work. The entire process of monitoring the work is usually extremely inefficient, and verifying the results of the work to prove that the corresponding amount of work has been completed is a very efficient method. Bitcoin uses the PoW mechanism in the process of block generation; obtaining a reasonable random number to solve a mathematical problem requires numerous attempts at calculations. By checking records and verifying the proof of blockchain information, one can determine whether the specified difficulty level of work has been completed. $Merc