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What is Mining Approval?

The purpose of crypto money mining, which starts with good hardware, software and a crypto money wallet, is to produce crypto money by solving a number of mathematical problems with varying difficulty levels. This is the process of adding and removing transactions that are recorded on the blockchain for everyone to see. Miners prove the accuracy of the transactions and pass them through the approval process. Thus, new blocks are added to the chain and the continuation of functionality is ensured. The most important process of transactions made using the SHA256 algorithm* is the approval mechanism. Although it is not a common situation, if more than half of the miners do not approve, the transaction can be canceled and the approval process can be negative. As a result of not being managed by a central authority and being majority-based in nature, each miner has one vote and the validity of the reward obtained by mining the block must be confirmed.

Mining approval can be made in two ways; Proof of Work (PoW) and Proof of Stake (PoS). The miner, who enters the approval process through Proof-of-Work, proves his transactions and his method of doing those transactions. In this way, he shows his methods and steps. Proof-of-Work covers miners and their transactions, and a miner also mines cryptocurrencies that do not belong to him. By proving that the transaction is actually done and correct through Proof of Work, the correctness of the chain is also proven. The PoW method has advantages as well as disadvantages. Costly purchases for hardware, electricity used to prove method, increased difficulty and decreased reward can all be considered as negative aspects of Pow.

Another approval process is Proof of Stake (PoS). Unlike Proof of Work, in Proof of Stake, the owner of cryptocurrencies is the main actor. That is, the validator is the owner of the cryptocurrency. PoS works differently than mining and is based on a multiplicity of quantities. The more crypto money a person has in his wallet, the more rewards he gets for the time he keeps it in the wallet. The retention period also means the confirmation period of the block. The point to be noted here is that the age (the age of being in the wallet) is reset when the person transfers from his wallet. The amount of the reward is determined based on the duration of the stay in the wallet. This is also called printing money and has many advantages. There is no need for hardware cost as in PoS. An average laptop is suitable for the operation to be performed. Besides, the electricity consumption is as low as possible and the approvers are more loyal. The controversial issue is that cryptocurrencies, which are usually produced in limited numbers, are owned by a certain audience and a small number of people have the title of validator.

*SHA, Secure Hash Algorithm, is a unique cryptographic hash process covering historical data.


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