How does 'minting' work in the world of digital currencies?

1 answers

• May 06, 2022 · 3 years ago
  Minting is a fundamental process in the world of digital currencies that allows for the creation of new coins or tokens. It is a decentralized process that involves network participants called miners. These miners use their computational power to solve complex mathematical problems, which in turn validates and secures transactions on the digital currency network. The process of minting requires a significant amount of computational power and energy. Miners are rewarded for their efforts with newly minted coins or tokens. Minting plays a crucial role in maintaining the integrity and security of the digital currency system, as well as regulating the supply of coins or tokens in circulation.
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