Mining Algorithm
| A mining algorithm is a set of rules and regulations that a computer must follow in order to create a valid block. In the cryptocurrency world, mining algorithms are used to verify and confirm transactions on the blockchain. The most popular mining algorithm is called Proof of Work (PoW). PoW requires miners to solve complex mathematical problems in order to add new blocks to the blockchain. In return for their work, miners are rewarded with cryptocurrency. Another popular mining algorithm is called Proof of Stake (PoS). PoS does not require miners to solve complex mathematical problems. Instead, they can validate transactions and add new blocks to the blockchain by holding and staking cryptocurrency. |
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