Algorithm-Driven Blockchain: From Bitcoin Mining to Underlying Logic

In simple terms, an Algorithm is a set of instructions with a clear starting and ending point that processes input data according to predetermined steps and ultimately produces an output. This mechanism is not only found in the fields of computer science and mathematics but can also be seen in biological neural networks, electronic devices, and even financial systems.

Algorithm Practice in Blockchain

In the Bitcoin network, the Proof of Work (PoW) Algorithm is a typical example. This algorithm is responsible for the core task of mining—verifying transactions, ensuring network security, and maintaining normal system operation. Each mining operation essentially runs this complex algorithm, exchanging computational resources for network trust.

Two Major Evaluation Dimensions of Algorithm

To judge whether an Algorithm is good or not, mainly look at two indicators:

Accuracy — Can the algorithm accurately solve the problem? Whether it's a simple calculation of two numbers or finding the optimal route between two geographical locations, accuracy determines the credibility of the results.

Efficiency——How much computational resources and time are needed to complete the same task. An efficient algorithm does more work with fewer resources, which is crucial in large-scale data processing and real-time decision-making.

Trade-off between Complexity and Resource Consumption

Multiple simple algorithms combined can accomplish complex tasks, but the cost is that more computational resources are required. This is also why some blockchain projects continuously optimize consensus algorithms—to find a balance between security and efficiency.

Computer scientists often use asymptotic analysis as a mathematical tool to compare the performance of different algorithms. This method is applicable to any programming language or hardware platform, making the evaluation more objective.