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Types of Mining 2021

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Proof-of-Work

Proof of work (PoW) is a form of cryptographic zero-knowledge proof in which one party (the prover) proves to others (the verifiers) that a certain amount of a specific computational effort has been expended. Verifiers can subsequently confirm this expenditure with minimal effort on their part.

  1. Proof-of-work calculations of the puzzle are solved on an average every 10-minutes. The new block is added to a blockchain by the miner who first completes the puzzle. The difficulty of the puzzle, which is also called the Network Difficulty, gets changed after every 2016 block (which happens almost after every 16-days). The hashrate (computational power of the miner) amount contributing to the Bitcoin network is known as the network difficulty.
  2. Block reward is given to that first miner who solved the Bitcoin puzzle first.

Proof-of-Coverage

Proof of coverage (PoC) is the algorithm used on the Helium blockchain. The algorithm uses radio waves to validate Hotspots are providing legitimate wireless coverage. The validation works by adding new blocks, performing new tasks and rewarding miners with rewards.

Proof-of-Space

Proof of space (PoS) is a means of showing that one has a legitimate interest in a service (such as sending an email) by allocating a non-trivial amount of memory or disk space to solve a challenge presented by the service provider.

Proof-of-Stake

The Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins they hold. This means that the more coins owned by a miner, the more mining power they have.

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/techfitlab/types-of-mining-2021-232ade1ac86?source=rss——-8—————–cryptocurrency

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