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11/15/2024 3:45:53 PM (GMT+1)

How does cryptocurrency emission work?

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Cryptocurrency emission is the process of creating new coins or tokens, which is regulated by the protocol of each specific network. Unlike traditional currencies, cryptocurrencies are not issued centrally. For most cryptocurrencies, emission occurs through mining or staking. In mining, network participants solve complex mathematical problems to add blocks to the blockchain and receive rewards. In staking, users lock their coins in the network, ensuring its security and earning income. Cryptocurrency emission can be limited, as with Bitcoin, or adjustable, as with Ethereum, depending on the economic model of the network.


This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.



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