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Definitions Edit

A miner is

[a] user[] in digital currency networks who gather together blocks of transactions and compete to verify them. In return for this service, miners that successfully verify a block of transactions receive both an allocation of newly created currency and any transaction fees offered by parties to the transactions under question.[1]
an individual or entity that participates in a decentralized virtual currency network by running special software to solve complex algorithms in a distributed proof-of-work or other distributed proof system used to validate transactions in the virtual currency system.[2]

Overview Edit

"Miners may be users, if they self-generate a convertible virtual currency solely for their own purposes, e.g., to hold for investment or to use to pay an existing obligation or to purchase goods and services. Miners may also participate in a virtual currency system as exchangers, creating the virtual currency as a business in order to sell it for fiat currency or other virtual currency."[3]

References Edit

  1. Digital Currencies: Response to the Call for Information, at 5 n.1.
  2. Virtual Currencies: Key Definitions and Potential AML/CFT Risks, at 7.
  3. Id.

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