Your guide to cryptocurrency mining
As of July 5, 2022, there are two ways of mining cryptocurrencies: using Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus algorithms. These processes vary greatly in many ways. However, the extraction of digital assets with proof of ownership is gaining popularity every year. This fact is the result of the effectiveness of the consensus algorithm.
Decentralization is one of the most important concepts in relation to cryptocurrencies. This indicates that the powers will be distributed among all owners of cryptocurrencies, and not between centralized websites such as banks and governments. Thus, according to some cryptocurrency users, bitcoin is in contradiction with the fundamental principles of decentralization, financial independence and Web 3.0. Since blockchain and cryptocurrency technologies are still in their infancy, there is no single method of regulation yet. However, the general idea is to pay taxes as you earn money, with the difference arising from the acquisition and disposal of digital assets.
The BNB blockchain for financing will be rebuilt. BNB will be able to process 5000-10,000 transactions per second after the upgrade, which is scheduled for next year. In fact, Finance has launched another blockchain (the L2 blockchain), where transactions can be unloaded and processed faster and cheaper, and the results are sent back to the main BNB network.
