What Is Crypto Minting in Simple Words?
The term “minting” has existed even before the rise of cryptocurrency, which is the process of making a coin by stamping metal. In the crypto space, its definition is just the same. However, the coins or tokens being generated are 100% digital and the process of making them is much more complex than stamping a piece of metal. Worry not, because this article will simplify what minting in the crypto world means.
How Does Crypto Minting Work?
Minting cryptocurrency is the process of making new coins or tokens through authenticating data and adding new blocks of information onto the blockchain using a proof-of-stake protocol. The process of minting is the same as how cash is issued by central banks. Minted tokens will be added to the circulating supply just like how newly-printed cash can be used to pay for anything, anywhere.
Mining vs Minting
Mining is the process of recording and verifying transactions on a proof-of-work blockchain. To mine crypto, mining computers are needed to solve complex mathematical problems. In return, the user will get the chance to mine a new block and be rewarded with cryptocurrency.
Minting, on the other hand, is the process of validating information, adding new blocks, and recording that information into the blockchain.
LFi Minting
Minting on the LFi platform works on three different layers: Proof of Stake, Proof of Coverage, and Proof of Action. In the first layer, Proof of Stake, the user will be a validator of the LFi Chain and will be rewarded with LFi tokens for every validated block.
The second layer, Proof of Coverage, allows users to participate in the development of LFi’s Internet of People by owning or renting hardware, activating license, and sharing IPFS. The participants may then receive daily rewards.
The third and last layer, Proof of Action, is done by performing actions such as learning how LFi works, watching ads, and many more.
LFi Cloud Minting, on the other hand, is a significantly more advanced version of minting. Normally, you need to buy hardware with a huge amount of computing power and disk space to mint tokens. In addition, you will need to watch over your hardware to make sure it is in optimal state.
But with LFi Cloud Minting, the process will be a whole lot easier. You only need to rent the minting hardware, which will be placed in a remote location. No maintenance checks. No need to spend more. No more hassle. Yes to token rewards.
To get started with LFi minting, have a look here: https://white-paper.lfi.io/lfi-minting/lfi-minting
Website 🔗 https://lfi.io/
