The Mining Process
The Mining process can be described simply as a record-keeping service. Kredit Miners help keep the Blockchain consistent, complete, and unalterable by repeatedly verifying and collecting new transactions into a group of transactions called a block. Each block contains the cryptographic hash of the block before it. Which is why the Blockchain is called the Blockchain.
How many miners does it take to Hash a Block?
The mining process involves multiple miners attempting to hash blocks. Miners often work together in "Mining pools" sharing the Block reward between all miners in the pool related to how much hashing power each Miner contributes to the pool.
In order to be accepted by the rest of the Kredit network, a new block must contain something called a proof-of-work. The proof-of-work algorithm requires miners to find a number called a nonce value, this variable allows miners to "Hash" the Block effectively verifying it and sealing it to be added to the Blockchain. The block can only be hashed when using the nonce value, and the resulting hash value is smaller than the network's difficulty target. Blocks that show an incorrect proof-of-work are immediately rejected by the Kredit Network.
How hard is it to find the nonce value?
Finding the Nonce value is like winning the lottery, Miners need to try millions of hashes a second to find the right nonce value to seal the block.
This proof is easy for any node in the network to verify, but extremely time-consuming and computer resource intensive to generate. This is why there is a reward attached to each block, a specific amount of KRD, given to the miner (or group of miners) that find the right nonce value. By attaching an incentive to Block solving we ensure that the Kredit Network will always be maintained, Kreditcoin creation is directly linked to a function that requires a significant input of resources, and that Kreditcoins can't be "Printed" at will like Fiat currencies, effectively killing off inflation for good.
How many KRD do Miners get as a reward?
The current Block reward for Kredit is 44 KRD. However the KRD reward per block also halves every 12,000,000 coinstock, or year, whichever comes first.