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How mining works

First, let’s understand what mining and near pay card are. In simple words, this is the process by which many cryptocurrencies work.

Miners’ computers solve a complex cryptographic problem – namely, they try to find the right combination of numbers and letters that will be included in the new block of the blockchain. Without mining, new transactions in the network that are recorded in the same blocks will not be added – accordingly, the whole mechanism will stop working.

Thanks to mining, there is also the emission of cryptocurrencies – for example, bitcoin. A reward in the form of a certain proportion of coins is given to the computer that first found the correct solution to the problem. Now the payout is 6.25 BTC.

Cryptocurrencies that operate on the basis of mining use a method known as Proof of Work (PoW). But not all digital assets work this way – some use Proof of Stake (PoS), which allows you to receive payments for holding coins.

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