Learn the fundamental concepts of cryptocurrency mining and staking, two methods of earning crypto rewards.
What is Mining?
Mining involves validating transactions and adding them to the blockchain by solving complex mathematical puzzles, earning new coins as rewards.
What is Staking?
Staking means locking up coins to support network operations and security, earning rewards based on the amount staked.
Differences Between Mining and Staking
- Mining uses computational power; staking uses coin holdings.
- Mining is energy-intensive; staking is more energy-efficient.
- Mining is common in Proof of Work; staking is used in Proof of Stake.
Both mining and staking offer ways to earn cryptocurrency while supporting blockchain networks.
Leave a Reply