What is Greenshilling mining?

Mining is the process of spending computing power to process transactions, secure the network, and keep everyone in the system synchronized together.

It can be perceived like the Greenshilling data centre except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network.

This process is referred to as “mining” as an analogy to gold mining because it is also a temporary mechanism used to issue new Greenshillings. Unlike gold mining, Greenshilling mining provides a reward in exchange for useful services required to operate a secure payment network. Mining will still be required after the last Greenshilling is issued.

How does Greenshilling mining work?

Anybody can become a Greenshilling miner by giving service to the network and receiving reward for those services.

They receive newly created Greenshillings issued into existence according to a fixed formula.

For new transactions to be confirmed, they need to be included in a block along with a proof of work. Such proofs are very hard to generate because there is no way to create them other than by submitting a vast amount of calculations.

.card-img-bottom2 As more people start to mine, the difficulty of finding valid blocks is automatically increased by the network to maintain a mean average time to find a block. This ensures that no individual miner can control what is included in the public ledger.The proof of work is also designed to depend on the previous block to force a chronological order in the block chain. This makes it exponentially difficult to reverse previous transactions because this requires the recalculation of the proofs of work of all the subsequent blocks. When two blocks are found at the same time, miners work on the first block they receive and switch to the longest chain of blocks as soon as the next block is found. This allows mining to secure and maintain a global consensus based on processing. Greenshilling miners are neither able to cheat by increasing their own reward nor process fraudulent transactions that could corrupt the Greenshilling network because all Greenshilling nodes would reject any block that contains invalid data as per the rules of the Greenshilling protocol. Consequently, the network remains secure even if not all Greenshilling miners can be trusted.