Mining

1. definition

Primary process by which new coins/tokens are minted into the system.

1.1

When a new block is found, the miner who finds it includes the 'coinbase' transaction awarding their own wallet with the block reward coins. The amount of coins rewarded varies depending on the crypto asset being mined, and the current distribution rate. At set blocks the amount of coins distributed is reduced by half, until eventually all of the coins are created.

1.2

Different methods of mining exist, but all serve the same purpose of securing the blockchain, confirming transactions, and introducing new coins into the system by incentivizing miners. The most common method of mining is Proof of Work.

* All terms and definitions may update as the Cryptionary improves.

Support us with...

donate with BTC
donate with BCH
donate with ETH

Bitcoin (BTC)

bitcoin:1AVzNhQju7fCS2TJnzqzojCJeLDURsqEbM