In blockchain and cryptocurrency, ‘minting’ refers to the process of creating new coins or tokens. Minting is also used in creating non-fungible tokens (NFTs) or other types of tokens. When someone mints an NFT, they are essentially creating a new, unique digital asset on the blockchain.
Although it is often associated with Proof of Stake (PoS) blockchains, minting can occur on various blockchain platforms. In PoS blockchains, new tokens are generated as a reward for participants who validate transactions and secure the network. This process ensures that the blockchain can operate efficiently and securely without the high energy consumption associated with Proof of Work (PoW) mining.
In PoS systems, validators are chosen based on the number of tokens they hold and are willing to stake as collateral. They are rewarded with newly minted tokens after validating transactions and creating new blocks, which incentivises participants to help maintain the security and integrity of the blockchain.
