Blockchain Mining and Decentralized Autonomous Organizations (DAOs)
Blockchain Mining and Decentralized Autonomous Organizations (DAOs)
Blog Article
Introduction
Blockchain technology is built on decentralization, and two key components driving its ecosystem are mining and Decentralized Autonomous Organizations (DAOs). Mining secures blockchain networks, while DAOs enable decentralized governance without traditional hierarchies. Together, they form the backbone of a trustless digital economy.
What is Blockchain Mining?
Blockchain mining is the process of validating transactions and adding them to a blockchain ledger. Miners use computational power to solve cryptographic puzzles, securing the network and earning rewards.
The Role of Miners in a Blockchain Network
Miners ensure network security and prevent fraud by confirming transactions through consensus mechanisms.
Proof-of-Work (PoW) vs. Proof-of-Stake (PoS)
- PoW: Requires solving complex mathematical problems (e.g., Bitcoin).
- PoS: Uses staking instead of computational work to validate transactions (e.g., Ethereum 2.0).