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Author: Admin | 2025-04-27
Image Source: Pixabay The minting process in the crypto ecosystem involves the validation of transactions to be added as new blocks on a blockchain network. At the core, blockchain networks are designed to operate as distributed ledgers, which means that users can leverage these ecosystems to record on-chain transactions and validate their authenticity. Minting supports validating transactions in Proof-of-Stake (PoS) blockchain networks, while the Proof-of-Work (PoW) consensus is supported by mining. The concept of minting dates back to the medieval age, with the first mint being introduced in the 7th century B.C. This was an industrial facility for coin manufacturing that coined precious metals such as silver, gold, and electrum, which would later be used as currency. Since then, minting has been a core part of monetary economics and can be seen in modern-day societies where central authorities such as the federal reserve or central banks mint (print) fiat money. In the emerging crypto world, minting is closely related to staking as they both play a fundamental role in PoS blockchain environments. While the two concepts play hand-in-hand to support blockchain networks, the fundamentals of each are different. Staking involves the process of buying crypto-assets and locking them in a wallet for a specific period to enhance the network’s security. On the other hand, minting is the process of recording on-chain data, generating new blocks and validating transactions. Staking & Minting in PoS Blockchains The past year has been a game-change for crypto following the debut of Decentralized Finance (DeFi)
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