Miner competition refers to the rivalry among participants in a Proof-of-Work blockchain network to be the first to solve a cryptographic puzzle and add the next block of transactions to the ledger. This competition requires significant computational power and energy expenditure, with the successful miner earning block rewards. The intensity of this competition directly impacts network security and decentralization.
Context
Crypto news frequently discusses miner competition in relation to Bitcoin’s hash rate, mining difficulty adjustments, and the profitability of mining operations. Intense competition can lead to higher network security but also increased energy consumption and centralization if smaller miners are priced out. The dynamics of miner competition are vital for understanding the economic incentives and operational resilience of Proof-of-Work digital assets.
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