Crypto Alphabet

What is forging?

Forging (or minting) in cryptocurrencies is the creation of new blocks in blockchain based on the Proof-of-Stake algorithm with the opportunity to receive a reward in the form of new cryptocurrencies and commission fees.

Forging is not the only technology for creating new blocks. An alternative is mining, which is based on the Proof-of-Work algorithm. Usually only one technology is used, but some cryptocurrencies use combinations of them.

Different cryptocurrencies may have additional conditions for participation in forging. For example, only those amounts that have at least 1 440 confirmation blocks, can join forging Nxt; Emercoin requires the assets involved in the stake valuation to be frozen for at least 30 days. In this case, the reward becomes similar to the accrual of interest on the deposit.