Mining: how to create cryptocurrencies?

Earn almost 500,000 euros in 10 minutes? Some creators of cryptocurrencies achieve this through a special process: mining. This term refers to the entire process of creating, selling, buying and trading cryptocurrencies. The role of the miner is to verify transactions by performing calculations using very powerful computers before writing them to the blockchain.

Is it still a little fuzzy? We explain how it works in pictures:

Transition to “Proof of Stake”

Mining requires a significant amount of energy. That’s why mining centers have been created, gigantic data centers that cluster thousands of ASICs (Application Specific Integrated Circuits), computers made up of microchips specially programmed to mine cryptocurrencies.

Highly energy-intensive, these centers are moved to countries with cheap electricity or to cold regions such as Siberia to keep computers running smoothly. This technology obviously poses environmental challenges and many are turning to create more sustainable cryptocurrencies.

Indeed, Ethereum, the second most valuable currency after Bitcoin, is preparing to change its mode of operation in September 2022 to reduce energy consumption by 99%. To do this, he will move from the Proof of Work logic to the Proof of Stake logic. A system where mining is no longer based on computing power, but miners are selected according to the number of tokens they have, so as not to waste energy.

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