How Bitcoins are generated to Market ?

in #blockchain • 5 years ago (edited)

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

#bitcoin #crypto #technology
5 years ago in #blockchain by
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