How BTC/Altcoins are generated/issued by any network?
Hi Guys, Ever thought how these coins are released to market/miners...? Who is giving the coins...???
To answer this query, we need to understand the term Consensus mechanism.
It means principles on which a network is agreeing to record the transaction in the network and releasing the coins as a reward for successfully adding the transaction into the network.
By this, we understand that it's because of the consensus mechanism which releases the coins into the market.
Here are the 5 most popularly adopted Consensus mechanism in the decentralized networks.
1.Proof of Work (Used by Blockchain)
2.Proof of Stake (Used by Ethereum)
3.Delegated Proof of stake
4.Proof of Importance
5.PBFT - Practical Byzantine Fault Tolerance
These 5 will be explained in detail, how it exactly works in the next post. Stay Updated ....!!!
*Altcoins refers to all coins other than Bitcoins