22/07/2021
Difference between Mining and Minting.
Cryptocurrency mining is the process of recording and verifying transactions in a public digital record of transactions, known as blockchain. To do this, miners solve complex mathematical problems and, in return, there is the possibility that they will be rewarded with cryptocurrencies. As a result of mining in the Proof-of-Work sense, a new block is mined. Mining new blocks enables the continuation of the blockchain. Therefore, mining has two purposes: to create new coins and to keep a record of all existing token transactions.
On the other hand, in the Proof-of-Stake mechanism, coins are not minted through mining, but through staking. The Proof-of-Stake mechanism does not have miners, but validators, and does not allow new blocks to be mined, but rather new blocks to be minted or forged. Minting is the process of validating information, creating a new block and recording that information on the blockchain. Therefore, Proof-of-Stake is the minting process of how blocks are created and how data is added to a block.
This is the main difference between cryptocurrency mining and minting, and is really a difference between Proof-of-Work and Proof-of-Stake.
