Introduction to min (t) ing of cryptocurrencies – Bitcoin – Cryptocurrency 2020

This platform is offered to you in partnership with POS Bakerz, a company specializing in cryptocurrency staking, operating infrastructures for Proof of Stake (PoS) blockchains and offering delegation services for Tezos holders (XTZ), Cosmos Network (ATOM), IRISnet (IRIS) and Terra Money (LUNA).

Hi everyone ????

While most people are starting to be familiar with Proof of Work (PoW) cryptocurrency mining like Bitcoin, few people still master the subject of minting, better known as staking.

Before we start going into details, let’s briefly recall what is Proof of Work and what are the differences with Proof of Stake (PoS).

Proof-of-Work (PoW) vs Proof-of-Stake, PoS?

Proof of work (PoW) or proof of stake (PoS) are two of the most well-known mechanisms when it comes to validating blocks in a blockchain.

With the proof of work, for an actor (minor) to be eligible to create and / or add a block, he must solve a mathematical problem. For example, Bitcoin uses Hashcash proof of work.

Bitcoin electricity consumption. Bitcoin consumes more electricity than some countries in Africa or Asia.

To do this, in PoW, so that miners can participate in the network and earn rewards, they need significant computing power and must use hardware such as CPU, GPU, FGPA or ASICS which are expensive in energy.

This consensus mechanism is called mining.

But over the years, the protocols have improved and become more eco-friendly. With the proof of stake, or Proof of Stake (PoS) in English, the actors no longer need significant computing power but simply to hold the cryptocurrency and put it in staking to be able to earn the rewards of the network. But then how exactly does it work.

What is min

Introduction to min (t) ing of cryptocurrencies – Bitcoin – Cryptocurrency 2020
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