Halving events aren't exclusive to Bitcoin; many other cryptocurrencies experience this unique event, which reduces the creation of new coins. In this article, we'll explore some cryptocurrencies other than Bitcoin that undergo halving.
What Other Cryptocurrencies Have a Halving?
Halving events are primarily associated with Proof-of-Work (PoW) consensus algorithms where the reward for validating a block of transactions is reduced after a predetermined time. Below are some of the mainstream PoW cryptocurrencies that experience cryptocurrency halving:
- Litecoin (LTC): Litecoin is a hard fork of the Bitcoin blockchain and is often considered the "silver" to Bitcoin's "gold". Litecoin experiences halving, in Litecoin halving, the block rewards miners get for verifying and adding a block to the blockchain reduces by half every four years like Bitcoin. Litecoin's halving occurs precisely after every 840,000 blocks, in contrast to Bitcoin's 210,000 blocks.
- Nervos Network (CKB): Nervos Network is a public proof-of-work blockchain solution developed to address scalability issues in layer-1 networks, featuring a dual-layer infrastructure with layer-1 as the foundation and layer-2 called “Godwoken”. Nervos Network, as a proof-of-work blockchain, experiences block halving, during which the block rewards for miners mining Nervos' native token, "CKB," are reduced by 50%. Nervos Network block halving happens every four years.
- Dash (DASH): Dash is an open-source Proof-of-Work cryptocurrency, originally known as Darkcoin. Dash was launched as a fork of Litecoin (which is a fork of the Bitcoin protocol). Dash blockchain also experiences block halving. Dash halving occurs every 4 years, which is approximately after every 210,000 blocks, and Dash miners’ block rewards are reduced by 50% after each halving.
Summary
Block halving isn’t just peculiar to Bitcoin, other Proof-of-Work blockchains also experience halving. Block halving is important as it reduces miner rewards, thus, increasing the cryptocurrency's scarcity which often results in to price increase. Despite the reduced block rewards, miners remain profitable due to potential price appreciation.
Hot