Mining adds new blocksblocks - One or more transactions prefaced by a block header and protected by proof of work. Blocks are the data stored on the block chain. to the block chainblock chain - A chain of blocks with each block referencing the block that preceded it. The most-difficult-to-recreate chain is the best block chain., making transaction history hard to modify. Mining today takes on two forms:
Solo mining, where the minerminer - Mining is the act of creating valid Dash blocks, which requires demonstrating proof of work, and miners are devices that mine or people who own those devices. attempts to generate new blocks on his own, with the proceeds from the block rewardblock reward - The amount that miners may claim as a reward for creating a block. Equal to the sum of the block subsidy (newly available duffs) plus the transactions fees paid by transactions included in the block. and transaction fees going entirely to himself, allowing him to receive large payments with a higher variance (longer time between payments)
Pooled mining, where the miner pools resources with other miners to find blocks more often, with the proceeds being shared among the pool miners in rough correlation to the amount of hashing power they each contributed, allowing the miner to receive small payments with a lower variance (shorter time between payments).
Updated almost 2 years ago