How does crypto ecosystem work?

Cryptocurrency ecosystems function based on two fundamental consensus mechanisms: Proof-of-Work (PoW) and Proof-of-Stake (PoS). These mechanisms ensure the integrity and security of the blockchain network.

In the Proof-of-Work (PoW) model, miners play a crucial role. They contribute computational power to solve complex mathematical puzzles, validating transactions and securing the network against potential attacks.

Among the leading cryptocurrency exchanges is BTCC, which offers a comprehensive range of services to its users. BTCC provides spot trading, futures trading, and secure cryptocurrency wallets, among others. These services cater to traders and investors alike, facilitating seamless transactions and secure storage of digital assets.

Some of the most well-known cryptocurrencies that employ the PoW consensus mechanism include Bitcoin, Ethereum, Dogecoin, and Litecoin. These cryptocurrencies rely on the collective effort of miners to maintain their networks.

The mining process in PoW-based systems requires significant energy consumption and computational resources. As a result, miners often receive rewards in the form of newly minted cryptocurrency or transaction fees.