8/31/2023 0 Comments Mining msi afterburner![]() ![]() Cryptocurrencies are the Central Bank (issues money), mining pools are commercial banks (prepare transactions, distribute rewards, and compete with each other), and miners are clerks (does the essential work). ![]() Let’s draw an analogy with the modern banking system. They would make an attack almost impossible due to the lack of necessary mining equipment in the world.Īny PoW cryptocurrency network (Proof of Work) pays miners for this work with their coins by issuing new coins and using transaction fees. More miners mean better protection and lower risk of an attack. Miners provide protection to cryptocurrencies against the potential hold or cancelation of a transaction. ![]() If there are only ten miners out of a million left in the end, the coin creation will not stop and soon regain the same level with adjusted difficulty. For most modern currencies the daily outflow of up to 10% of miners will affect the speed of coin issuance by less than 1%. It’s wrong to say that miners issue cryptocurrency or somehow participate in this process. Sadly, many legislators wrongly believe that mining is directly connected to coin creation. Mining means providing computing power for the cryptocurrency network protection in exchange for a potential reward for equipment operation. ![]()
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