Do you know the difference between mining and minting.
10 Jan 2023, 07:25
Do you know the difference between mining and minting?🤔
Mining is the process of recording and verifying transactions on a public digital record of transactions, known as a blockchain. In order to do that, miners solve complex mathematical problems and in return, there is the possibility they will be rewarded with digital assets.
As a result of mining in the Proof-of-Work sense, a new block is mined. Mining new blocks allows for the blockchain’s continuation🙌🏻
Therefore, mining serves two purposes: to create new coins and to maintain a log of all the existing token transactions🤯
On the other hand, minting is the process of validating information, creating a new block, and recording that information into the blockchain. Therefore, Proof-of-Stake is the minting process for how blocks are created and how data is added to a block💡
Under the Proof-of-Stake mechanism, coins are not minted through mining, but rather through staking🤫
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