Cryptocurrency mining is the way in which new cryptocurrencies are created on the Blockchain. There are two main ways to mine or create cryptocurrencies and they are known as POW (Proof of of Work) and POS (Proof of of Stake).

Proof of of Work or POW mining is developed through specialized computers, which are programmed to solve complex calculations that require considerable time, electricity and technological innovations. It may sound a little difficult to understand, but it is enough to be clear that these specialized computers are owned by “miners” or people and companies responsible for keeping the existence and integrity of the Blockchain afloat, verifying each of the transactions that run through the Blockchain and earning as a reward small fragments of Bitcoin. The larger the network of specialized computers the miner owns, the larger the reward received in Bitcoin.

On the other hand, we have POS mining or rather the Proof of Participation (POS) method to create cryptocurrencies. While this method has not been widely developed and there is no definitive idea accepted by the whole community, we can find certain generalities presented below:

• Usually the POS method applies to those cryptocurrencies that have been mined entirely by its creators

• Usually the POS method rewards users who have the most cryptocurrency either in the form of new cryptocurrencies or receiving a small percentage for transaction charges

• Usually the POS method consumes much less energy as complex computational calculations should not be solved but all transactions on the Blockchain are verified by cryptocurrency retainers and security is based on the Blockchain and its algorithm.