Let’s start with the basics. Proof of Work (PoW) mining is focused on three things:

1) Provide bookkeeping services to the network. Mining is essentially 24/7 computer accounting to process transactions, storing them into blocks and integrating blocks into the blockchain.

2) Guarantee the safety and stability of the network. When there are many PoW miners, the blockchain is more secure.

3) Introduce new coins into the system. Miners get paid for each valid block that they integrate into the blockchain.

The process of mining is determined by the consensus rules of the network. Each cryptocurrency has its own design principles and therefore each currency is unique. For a detailed explanation, check docs.decred.org/

Mining rewards

You will receive a reward based on the amount of ‘work’ you put into the Decred network. In other words, miners receive a reward that is proportional to the computational power (hash rate) they provide. Smart miners do not operate alone, they combine their hash rate with other people into a mining pool. Mining pools distribute the rewards more fairly, so you can earn a steady amount of DCR rather than the “all or nothing” of solo mining.

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