Assalamu Alaikum
Hello everyone, how are you? Hope everyone is doing well,
Today I will try to talk about a very important topic,
Today we will know what is crypto mining? And what is staking? How does one work and which one is better,
Generally, crypto mining and staking are the two main methods of securing the blockchain network,
But both methods work in two different ways,
So let's understand the two methods well today,
crypto Mining
Crypto mining is a method of verifying transactions where miners solve complex mathematical problems to create new blocks and in return they get rewards.
When doing crypto mining, miners use powerful computers to solve mathematical problems,
But the miner who can solve the problem first adds a new block,
And then the block chain rewards that miner with Bitcoin or another Pow-based coin,
And this method is called Proof Of Work (POW)
Such as Bitcoin, Litecoin, and Ethereum, but Ethereum used the (Pow) method earlier, now (Pos)
And some advantages and disadvantages of mining in this method are highlighted |
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Using this method makes the network very secure,
Mining in this method can get big rewards
Blockchain is decentralized,
The bad aspects are highlighted |
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Mining in this method requires high electricity costs and expensive hardware, such as ASIC, GPU
It is very difficult for new miners to survive in this competition due to its extra cost and various types of problems,
Mining in this method has a huge negative impact on the environment, such as additional electricity costs,
What is the staking method
Staking is a process where you lock a certain amount of a Crypto Currency, secure the network and get rewards in return,
How does it work? |
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Usually users stake a certain amount of tokens, such as ETH, ADA,
The network algorithm automatically selects one of the stakers to create a new block, then the selected person adds the block and receives the reward,
And this is known as the Proof Of Stake (POS) method,
Such as: SOL, ADA, and ETH which ETH 2.0 is now based on Pos,
Advantages and disadvantages of staking
This method reduces electricity costs and is environmentally friendly
Does not require expensive hardware,
Easy to earn passive income,
Disadvantages are |
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Using this method may result in a slightly lower network decentralization,
Large stakers have more advantages,
Some staking platforms set a lock-in period,
Usually mining was very popular earlier, but after the additional electricity costs and electronic waste, many people stopped using this method and are showing interest in POS based systems and are becoming popular,
So I hope everyone understands, I'm ending here today, everyone be well, Allah Hafez
https://x.com/RakibInsid68546/status/1913409984278225200
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Thank you for sharing on steem! I'm witness fuli, and I've given you a free upvote. If you'd like to support me, please consider voting at https://steemitwallet.com/~witnesses 🌟
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Crypto mining is really doing quite well just that it seems it has lost its relevance years as from now
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It is a great post of What is crypto mining vs crypto staking? And what is the difference between them?.
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Thanks for reading bro
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