Crypto Mining Vs. Staking: What’s the difference?

Crypto Mining Vs. Staking: What’s the Difference?

When Bitcoin first introduced cryptocurrencies to the world, there were three ways to get some. You could either buy Bitcoin someone would have to give you some or mine it.

When it comes to mining vs. staking, the differences stem from the algorithms each uses to add new blocks. Crypto mining comes from its proof-of-work mechanism. In this decentralized system, the “work” is mining. Miners will compete to solve a complex puzzle for the hash, which changes depending on the network’s difficulty. This helps secure the network and stop bad actors from hijacking it while also achieving consensus for the decentralized network. Crypto staking has similar objectives to mining to validate transactions and achieve consensus. Its proof-of-stake mechanism was first used as an alternative to proof-of-work.

The difference comes from the means to these ends. Miners will use hash power in their bid to successfully mine a block, using a GPU or ASIC miner to do so. In contrast, staking requires cryptocurrency holders to ‘stake’ their coins. Users will lock their coins in for a fixed period where they cannot withdraw their assets, making them illiquid. The network will then choose validators for each block, depending on a node’s size and time staked. Compared to crypto mining, this requires a significantly lower amount of energy.

Both mining and staking have various advantages and disadvantages, too. Mining remains a reputable method for successful cryptocurrencies, given its use in Ethereum and Bitcoin for many years. However, the hardware requirements are often costly and energy-inefficient.

Staking makes it easier for holders to earn returns on their assets without garnering criticism for its environmental impact. Many cryptocurrency projects, such as RoboFi, even let users stake directly from the platforms.

About RoboFi

RoboFi (https://robofi.io/home/) is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.

About VICS

VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.

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