What is the difference between minting and mining in the context of crypto currency?
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Hello Mayank, Ok there is a big difference between minting and mining Crypto currency.
Minting is basically when you create your own crypto currency coin, although both terms could be used interchangeable but minting is not really a crypto term I have come across.
Mining is the way a lot of Crypto-currency like BTC, ETH, LTC and DASH, works, Lets use Lite coin for example, Instead of having one central authority who secures and controls the money supply (like most governments do for their national currencies), this work is spread out all across the network.
Miners collect the transactions using specific type of software on the network into large bundles called blocks. These blocks are strung together into one continuous, authoritative record called the block chain, which doesn't permit any conflicting transactions.
Miners get awarded if that block/transaction is solved. So when you send Lite Coin to someone for example. It collects that transaction for the network and then validated it so there is no conflicts with you transaction. It will then be put it into a large bundle with other transactions (called a Block). Then will computes cryptographic hashes over and over until if finds one good enough to solve the mathematical equation.
Then the block is submitted to the network, added to the block chain and the miner is rewarded a small % of Lite coin in return.
I hope this helps. Let me know if you have anymore questions!
Well basically in Bitcoin, what a miner does is devote computing power to the Decentralized network. The computing hardware is on the lookout to verify transactions according to the bitcoin protocol as well as calculating the 'winning' hash for a block of transactions. A winning hash depends on the difficulty set by the Bitcoin network, its not too hard so that it's becomes impossible to mike Bitcoins and its not too easy so that no one causes inflation. IF a winning hash is calculated by a miner, they receive a block reward of 12.5 BTC (this will halve later on). this BLOCK REWARD, is basically creating NEW BTC and thats how Bitcoins are minted.
Minting? Never heard of this term before lol but mining is when you harvest cryptocurrency through miners that are connected to nodes working in blocks on the blockchain
Oh, that's pretty easy. Mining is the process of confirming blockchain transactions by solving a cryptographic math puzzle and as a result receiving a coin.
Minting on the other hand is a proof of stake PoS process where you stake some coins to conform a transaction and receive interest on those staked coins. You also are in risk of losing those staked coins if you intend to cheat the system and confirm the wrong transaction on purpose.