Creating new units of cryptocurrency, a process known as "mining” or” mining," is a key element of most cryptocurrency systems, especially in the likes of Bitcoin. Mining is a decentralized way to maintain and develop the blockchain, as well as a way to distribute new coins among network participants.
Cryptocurrency is usually mined using the computing power of computers. Miners solve complex mathematical problems that require significant computational resources. These tasks are related to verifying transactions and adding them to the blockchain block. Each time a miner successfully joins a block to the blockchain, they are rewarded with a certain number of cryptocurrency units.
The mining process not only creates new coins, but also encourages strengthening the security of the entire network. The more computational work spent on maintaining the system (i.e., the higher the "hashrate” - the total computing power of all mining devices), the more difficult it is to become a victim of attacks or fall under the control of one person or group of people.
Traditionally, central processing units (CPUs) of a computer have been used for mining, but over time, graphics processing units (GPUs) have been shown to be more efficient in performing this task due to their better ability to process data in parallel. In recent years, specialized mining hardware has emerged - ASIC (Application-Specific Integrated Circuit), which is an integrated circuit designed specifically for the running hashing algorithm.
Механизм вознаграждения за The mining reward mechanism is often referred to as a Proof-of-Work (PoW) system or "Proof of Work". Along with PoW, there are other consensus algorithms used in various crypto platforms, such as Proof-of-Stake (PoS), Delegated Proof-of-Stake (DPoS), and Proof-of-Authority (PoA), each with its own unique method for verifying transactions and issuing new units.
It is important to note that each cryptocurrency has a limit on the number of units available for mining: for example, Bitcoin provides for issuing only 21 million bitcoins. This means that over time, the reward for adding a new block will decrease until it reaches zero; this phenomenon is known as халвинг (“halving.
Halving — from the English "halving" — halving) — is an event in the world of cryptocurrencies, in which the reward for mining a new block is halved. This is a mechanism built into some cryptocurrencies, such as bitcoin. Halving occurs after a certain number of blocks or a period of time and is part of the cryptocurrency's monetary policy aimed at controlling inflation. This event affects the economy of cryptocurrencies, as it reduces the number of new coins entering circulation, which can affect the price.