Like bitcoin, users mine ethereum by solving complex equations, and a transaction fee - called a “gas” fee - applies to cover the computing requirements.Įthereum is tied to the Ethereum Network, a blockchain-based software platform notable for the introduction of smart contracts.Ī smart contract uses a basic “if/when…then” formula to securely execute contracts without a central authority. What will happen once all the coins have been mined? That is yet to be determined.Įthereum is the second largest cryptocurrency in the market and is referred to as a second-generation cryptocurrency. However, as the more blocks are found the reward in bitcoins continues to decline.Īs of April 2022, 91 per cent of all bitcoins have already been mined, and it’s been forecast that the last coin will be mined around 2140.
“Mining” for bitcoin involves users solving difficult computational equations to find new blocks to add to the chain.
There are predetermined limits, with the release of new bitcoin administered by an algorithm and capped at 21 million coins. This first-generation cryptocurrency is a peer-to-peer online currency that uses blockchain technology to make transactions without the need for an official intermediary. The most well-known cryptocurrency is bitcoin.