In the world of cryptocurrencies, miners play an important role as they keep blockchain networks running by ensuring the safety and reliability of transactions. One of the key factors influencing the activities of miners is the “halving” process, which is a halving of the reward for mining a block. In this article we will look at how this process affects the behavior of miners and the general situation in the cryptocurrency market.
The halving process: what it is and how it works
Halving is a scheduled event in proof-of-work (PoW) consensus-based cryptocurrencies such as Bitcoin and Ethereum. Halving occurs at regular intervals and its main purpose is to control cryptocurrency inflation by reducing the number of new coins released into circulation.
The halving interval for Bitcoin is approximately four years, while for Ethereum it is approximately 18 months. During this process, the reward for mining each new block is halved, resulting in fewer new coins in circulation.
