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🎙 COINMAG Daily · November 12Bitget hack routes $78.6 M of Bitcoin through CoinJoin mixersListen 2hCOINMAG Digest · November 117.71 million gamers pre‑loaded GTA VI ahead of launchRead the issue 19h🎙 COINMAG Daily · November 11Visa’s Monad Deal pushes stablecoin run rate past $25 BListen 1dGrayscale commits $1 million to Zcash ecosystem amid ETF outflowsGrayscale will reinvest all sponsor fees from its Zcash ETF into the network and has issued four $100,000 grants, while the fund sees its assets shrink.Open 2d🎙 COINMAG Daily · November 10Nvidia slides 8% as CEO scandal threatens $350 B market valueListen 2dCOINMAG Digest · November 9Formation Securities files to launch 24/7 tokenized…Read the issue 3dFormation Securities files to launch 24/7 tokenized stock market on SoFormation Securities has applied to the SEC for permission to open a Solana‑based exchange that would trade tokenized US equities around the clock, aiming for aOpen 3d🎙 COINMAG Daily · November 9Bitcoin dips to $75,618 as AI panic and US midterms shake marketsListen 3d
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Crypto glossary

What is proof of work? Meaning in crypto

Proof of work is a consensus method in which miners compete to solve a costly math puzzle. The winner adds the next block and earns new coins and fees. Bitcoin, Litecoin and Dogecoin use it.

How it keeps the chain safe

Solving the puzzle takes real electricity and specialized hardware. To rewrite past blocks, an attacker would need more computing power than the rest of the network combined, which is enormously expensive on a large chain.

The criticism

Proof of work uses a lot of energy, which draws environmental criticism. Supporters answer that miners increasingly use cheap surplus or renewable power, and that the cost is exactly what makes the ledger hard to attack.

Questions

What is the difference between proof of work and proof of stake?

Proof of work secures the chain with computing power and electricity; proof of stake secures it with coins locked up as collateral by validators.

Can I mine Bitcoin at home?

Technically yes, but with industrial miners competing, a home setup rarely covers its electricity bill. Most small miners join a pool.

More terms

What is proof of stake? Meaning in crypto

Proof of stake secures blockchains with locked up coins instead of mining. How validators work and what slashing means.

What is staking? Meaning in crypto

Staking means locking up crypto to help run a proof of stake network in exchange for rewards. How it pays, where to stake and the risks.

What is DeFi? Meaning in crypto

DeFi, or decentralized finance, rebuilds lending, trading and saving with smart contracts instead of banks. How it works and its risks.

What is a DEX? Meaning in crypto

A DEX, or decentralized exchange, lets you swap tokens straight from your wallet without an intermediary. How it differs from a CEX.

What is a CEX? Meaning in crypto

A CEX, or centralized exchange, is a company like Binance or Coinbase that holds your funds and matches trades. Pros, cons and safety.

What is a liquidity pool? Meaning in crypto

A liquidity pool is a pot of tokens locked in a smart contract that powers swaps on decentralized exchanges. How providers earn fees.

All terms

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