Contest !! || Crypto mining fundamentals

Crypto mining is really unique method to earn money. This method is become very popular and easy way to make profit now a day. That is true friends, I am going to take part in this crypto mining contest. In this I will discuss about purpose of crypto mining, it's role in hash function and difference of proof work and proof mining. So friends come and read my post and get more knowledge about this. The title of this useful contest which title is

Contest !! || Crypto mining fundamentals

Write any three primary purposes of crypto mining?

Three primary purpose of crypto mining are:

1. Transaction Verification:
   With the help of mining, transactions on a blockchain network are validated and secured, avoiding double spending and guarantee their legitimacy.

2. New Coin Issuance:
   It works like state bank. Issuance of new coins is also priority of crypto mining. In many cryptocurrency networks like Bitcoin, the process of creating and introducing new coins into circulation is known as mining.
   
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3. Network Security:
   Crypto mining provide network security for miners. By requiring computational work to validate transactions and create new blocks, mining strengthens the decentralization and security of blockchain networks by making them resistant to fraud.

What is the role of hash functions in crypto mining?

Hash functions are important for crypto mining. They give transactions security and validation. This is how they function:

• Verification of transaction is possible by crypto mining. Every transaction has a distinct digital fingerprint or hash, created by hash algorithms. After grouping transactions into blocks, miners process the block's data using a cryptographic hash function. This hash connects the current block on the blockchain to the previous block by being a part of it.
• Proof of work is also main function of crypto mining. We can compete to find a certain hash value that satisfies specific criteria in many mining algorithms, like the used of Bitcoin. We must carry out computationally demanding calculations as part of the Proof of Work. In order to keep the rate of block generation constant.
  
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• Safety of the Network is also main function of crypto mining. Because hash functions produce entirely separate hash values for any modification to the data, it is very difficult to update prior transactions. This characteristic guarantees the blockchain's immutability and aids in preventing fraud on the network.

How proof of work and proof of stake mining can be differentiated?

Proof of Work:

• In miners compete to use computing power to solve challenging mathematical puzzles.
• A fresh block is added to the blockchain and bitcoin is hinoured to the first miner to solve the puzzle correctly.
• Proof of work requires a lot energy as miners must constantly draw the best solution.
• Bitcoin and Ethereum are two cryptocurrencies which used for proof of work, however, Ethereum is moving toward proof of stake.
  
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  Proof of stake mining:
• In proof of stake mining, the number of coins that validators own and are prepared to "stake".
• It based on many variables like the quantity and duration of bitcoin they possess, validators are chosen to build new blocks and verify transactions.
• Since validators stand to gain financially from the network, they are motivated to operate honestly. They run the danger of forfeiting their staked coins if they approve fraudulent transactions.
• It requires a less computing power than power of work, it is more energy efficient than power of work.