What is mining?

Maxcoin frequently asked questions.
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Meconomy153
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Joined: Sun Oct 12, 2014 2:00 pm

What is mining?

Post by Meconomy153 » Fri Jan 02, 2015 7:18 pm

Mining is the process of spending computation power to secure Maxcoin transactions against reversal and introducing new maxcoins to the system.

Technically speaking, mining is the calculation of a hash of a block header, which includes among other things a reference to the previous block, a hash of a set of transactions and a nonce.

If the hash value is found to be less than the current target (which is inversely proportional to the difficulty), a new block is formed and the miner gets the newly generated Maxcoins.

If the hash is not less than the current target, a new nonce is tried, and a new hash is calculated. This is done millions of times per second by each miner.

Meconomy153
Site Admin
Posts: 95
Joined: Sun Oct 12, 2014 2:00 pm

Who are the miners of Maxcoin?

Post by Meconomy153 » Sun May 03, 2015 4:14 pm

Mining is the process of processing te Maxcoin transactions. Miners are individuals who let special software run on their computer or who have special hardware which can be used for mining. Every person in this world can become a miner.

It is actually a smart way of the developers of Maxcoin (Luke Mitchell and Jordan Fish) to make sure that the payments made with maxcoins will be confirmed. The validation of the payments have to be done by a certain software on computers or special hardware. Because running the computers for the validation take a lot of time and electricity, the developers have found this way to make sure that people will participate. In this way, the maxcoins are actually a payment for the electricity used.

Miners use their computer for the validation of payments made. In return, they can get a reward. If your computer or mining hardware which is dedicated to mining will solve a complicated calculation, you will get rewarded with a certain amount of maxcoins.

Solving this complicated calculation is called finding a "block ". Maxcoin has 60 seconds blocktime, with a reward of 48 maxcoins if you find a block. The amount of the reward will be halved every 12 months.

The more miners there are, the more difficult it is to find such a block. This means that you need better software or hardware to get your reward of maxcoins.

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