Minting is the process of creating new tokens on a blockchain. These tokens can be either cryptocurrencies (fungible tokens) or NFTs (non-fungible tokens).
To mint crypto in an established blockchain, validators verify transactions, generate new blocks, and record this data on the blockchain and receive new tokens in exchange. The new tokens then become part of the circulating supply. Since minting increases a token’s available supply, doing so might lower the demand and cause the token's market price to drop.
Minting crypto tokens serves a double purpose: keeping the network running and incentivizing users to be active network participants.
Mining takes place in a Proof-of-Work network such as Bitcoin. Miners compete to be the first to solve complex mathematical puzzles to earn the right to add another block to the blockchain in exchange for a reward.
Meanwhile, minting takes place in a blockchain network using the Proof-of-Stake consensus mechanism. Ethereum, Cardano, and Solana are prime examples of this. In this system, instead of competing with each other, validators collectively stake crypto for the right to add new blocks and receive crypto in reward for their work. To qualify as a validator, an individual or group needs to lock up a certain amount of crypto for a certain amount of time.
Because only one validator needs to work on each block, the minting process is more energy-efficient than mining.
Just as with cryptocurrencies, minting is the process of creating NFTs on the blockchain. To mint an NFT, you need to prepare a digital file and upload it to the blockchain through a marketplace such as OpenSea. NFTs can be minted one-by-one or by batch, depending on the type of smart contract used. The process is less complicated than minting and mining cryptocurrencies, and anyone with a crypto wallet and enough funds can mint NFTs.
Minting NFTs creates shareable assets that enrich a blockchain and encourages users to keep using it. Why not try minting some tokens of your own?
