What Is Halving? Meaning & Example
Definition
A halving is a scheduled event that cuts the reward for mining new blocks in half. It slows the rate at which new coins enter circulation.
Related terms
Bitcoin is the first and best-known cryptocurrency, designed as decentralized digital money with a fixed maximum supply. It uses proof of work to secure its network.
MiningMining is the process of using computing power to validate transactions and add new blocks in proof-of-work blockchains. Miners earn newly created coins and fees as rewards.
Proof of WorkProof of work is a consensus method where miners spend computing energy to earn the right to add blocks. It makes attacking the network very expensive.
What is Halving?
A halving is a scheduled event that cuts the reward for mining new blocks in half. It slows the rate at which new coins enter circulation.
Can you give an example of Halving?
If miners earned 6.25 coins per block before a halving, they would earn 3.125 after it.