ELI5 What is a premined cryptocurrency?
If you're a beginner and you've been following some of the cryptocurrency debates on social media, then you may have encountered something like this:
CRV is getting premined an...
ELI5: Cryptocurrency Micro Mining
Micro mining is a cryptocurrency mining modality where large quantities of small, and low computing power, devices perform the mining work.
The idea stemmed from concepts relat...
ELI5 What is Honeyminer?
Honeyminer is an automatic multiple coin mining program that pays users to use their spare computing power.
Honeyminer leverages a variation of the concept of micro mining, wh...
Proof of Space (PoSpace) Summary [Cryptocurrency consensus mechanisms]
Proof of Space uses hard disk space as the value used to guarantee a participant’s stake in mining. By allocating disk space, the network participant provides value to the network, which uses this space to solve computational problems. Given low network bandwidth for a lot of regions, making it difficult to transfer large amounts of […]
Proof of Location (PoL) Summary [Cryptocurrency consensus mechanisms]
In a Proof of Location consensus algorithm, users’ geospatial coordinates are accounted for as proof of value. This kind of algorithm is usually employed in cryptocurrency geomining systems. In a geomining application, users earn rewards for being at a certain place at a certain time. If, for example, a company wished to gather participants for […]
Proof of Activity (PoA) Summary [Cryptocurrency consensus mechanisms]
Proof of Activity (PoA) is a cryptocurrency consensus mechanism which combines Proof of Work (PoW) and Proof of State (PoW) into a hybrid mining system. In a PoA system, validators begin by applying a Proof of Work stage to block headers until they find a desirable hash. The block headers are then passed onto a […]
Proof of Burn (PoB) Summary [Cryptocurrency consensus mechanisms]
In the Proof of Burn (PoB) consensus mechanism, miners earn the right to mint the next block by burning some value in the blockchain. All proof systems are based on the principle that minting a block must incurr in some cost, otherwise fraudsters could inject invalid transactions into the blockchain. Bitcoin achieves this by making […]
Concepts In This Page
Passive Income refers to obtaining financial returns without requiring work by the investor. In cryptocurrencies, investors usually seek passive income by Staking, lending or via DeFi.
Proof of Stake
Proof of Stake is a consensus mechanism in which block verifiers prove their commitment to the network by staking their coins instead of by proving they performed some work (contrast with Proof of Work).
Staking is the process by which users delegate their Proof of Stake voting rights to a staking pool. The pool then verifies transactions on the users' behalf and, similarly to mining pools, share some of the profits back with the stakers.
Cryptocurrencies have sparked renewed interest in the search for sustainable energy sources, including hydro mining and solar power.
Hydromining is the practice of using water to generate electrical energy required for cryptocurrency mining.
A process or system by which multiple parties are able to reach consensus. In the context of cryptocurrencies, it's the process which allows for everyone to agree on everyone else's money balance. E.g. Bitcoin employs Nakamoto consensus via PoW mining.
Pre-mined cryptocurrencies are coins which have a significant amount mined by the founders before being released to the public.
Pre-mining is the practice of mining cryptocurrencies at a very low difficulty, before releasing the coin to the public.
Cardano is a 3rd generation cryptocurrency which is developed based on scientific methods, peer review and aims for formal verification and on-chain governance and compliance.