What is forging?
Forging is an advanced concept of the cryptocurrency mining method based on proof of ownership of a share of coins.
Forging is based on the POS "Proof of Stake" algorithm. The term itself is translated as “forging”, and the name of the algorithm can be translated as “proof of stake”.
This mechanism provides the opportunity to profit in the form of coins for creating new blocks within the blockchain. The main resource, on the basis of which it is determined which of the participants will receive a reward for creating the block, is Stake - the “share” of the number of available coins determines which network node will receive the right to open a new block in the mining process.
How forging works
The participants of the Proof-of-Stake algorithm are required to master as many coins as possible to increase the share and, accordingly, profitability, while they are not required to provide computing power.
The receipt of new coins occurs due to the deduction on the account of coins already mined or previously purchased. The creator of a new block is automatically selected by the system based on the Stake indicator, that is, the number of cryptocurrency units on the wallet.
So holding 10% of all tokens available in the node, the participant can count on approximately the same amount of percent from the commission of all completed transactions. The larger your Stack, the greater the profit.
How Staking Works
In order to create a “Stack” and start POS mining, you just need to create a wallet, top up it with the desired number of coins and click “Stake”. The system automatically syncs with the blockchain and makes a connection. Tokens are frozen for a certain time in the “Stack” during which it produces new coins every day.
A certain number of tokens included in the frozen "Stack" is an integral part of the POS mining process, while the user remains the owner of these coins and can pick them up after the process expires.