MINING

What is liquidity mining?

Legitimate liquidity mining exists to enable decentralized finance (DeFi) networks to automatically process digital currency transactions. DeFi is an emerging financial technology that uses blockchain-based distributed ledgers, similar to those used by cryptocurrencies, to adjudicate transactions between different types of cryptocurrencies, governed by trading protocols built into the ledgers themselves.

Automated Market Makers (AMMs)

It is run by a protocol built into the network known as Smart contracts embedded in DeFi networks must quickly determine the relative value of the currencies being exchanged and execute transactions. Because these decentralized exchanges do not have a centralized crypto pool to complete transactions, they rely on crowdsourcing to provide liquidity pools, which are the pools of cryptocurrency capital needed to complete transactions.

To create a liquidity pool that typically handles transactions between a pair of cryptocurrencies, investors pledge the same value of both cryptocurrencies to the pool, tying them to a smart contract on the blockchain. Contributors are compensated based on a percentage of transaction fees associated with the DeFi protocol.

What is POS mining?

Both PoW and PoS methods are called mining, where PoW works to solve a hash, which is a password number, in an offline location commonly called a mining farm, and receives coins as a reward in return for solving the hash. In the case of PoW, mining requires investing in processing equipment and charging huge energy bills to power the machines attempting to solve the computations.

The method that secures these shortcomings is the PoS method, in which verifiers certified by the blockchain verify blockchain transactions and receive compensation accordingly. This is also called a transmission fee or gas fee.

The POS method is selected according to the number of coins held by the validators participating in node verification, The larger the quantity, the higher the allocation and the more rewards you can get accordingly, Bludefi participates in verification. When validators participate in the network, the assets held by the members are recognized as assets held by the validator, and the network allocates a high quota to generate profits and share the profits with the members. Just as a one-to-many fight is more advantageous than an individual fight. BLUDEFI’s validators occupy an overwhelming share of the node quota within each network.

Definition of “Validator”

• What is a Validator?
  An essential entity of blockchain, ‘Validator’.
  When first understanding blockchain, the player in charge of verification is literally a “verifier”, that is, the entity that verifies the transaction records recorded on the blockchain.
  
• What is the role of the Validator?
  Validator is responsible for verifying the validity and accuracy of all transactions.
  Blockchain transactions must be verified by a validator to be completed (transmitted), and if you have experienced coin transactions, you will know that the verification time required for a coin to be transmitted, that is, the number of confirmations, must be more than a certain number of times, and this role is played by What it does is the Validator.
  The BLUDEFI protocol is a mining investment conducted with members of a representative group of validators such as Steakfish, Chainflow, Pigment, and Corus One, and is approved by authenticated validators on each network.

• Who can be a validator?
  In theory, any of you can become a validator.
  Each blockchain network must have computers that meet the necessary specifications (minimum requirements), and how they participate in validation and operating specifications are different for each network chain.
  When participating in the testnet of a newly created chain, you can fulfill that role by being granted validator authority on the blockchain network.

• BLUDEFI’s strengths
  In general, because it is somewhat difficult for the general public to enter, the BLUDEFI protocol is a group of validators already approved by each network to ensure that members can make stable mining investments.
  Mining in the BLUDEFI protocol can be mined permanently as long as the blockchain network does not disappear, members assigned by the validator will be issued a unique code, and when a new member is introduced, the profits generated from the mining performed by the new member will be divided. You will be paid a portion on an ongoing basis.
  BLUDEFI is attracting attention as the most innovative company in the PoS system-based mining system, and its validators consist only of validators selected through the company’s rigorous internal verification.