What is minting in blockchain?

Minting in blockchain refers to the process of creating new digital assets or tokens on a blockchain network. It is similar to the concept of printing and distributing new currency in traditional financial systems. However, in the blockchain context, minting involves the creation and allocation of new tokens or assets in a decentralized manner. Minting typically requires the consensus of network participants and follows predefined rules, such as fixed supply or inflationary models, depending on the blockchain protocol. This process is crucial for blockchain platforms to enable the issuance and distribution of new tokens, facilitating various use cases such as cryptocurrency creation, asset representation, or even the establishment of decentralized applications and smart contracts.

This mind map was published on 11 September 2023 and has been viewed 42 times.