Staking, Mining, Splitting: What are the Differences and What You Need to Know
🔹 Every crypto enthusiast has likely heard of terms like mining and staking. But blockchain technologies are evolving and now offer much more, namely, splitting, the latest technology combining the best of mining and staking.

Let’s see why:

▶️ Mining is a process of creating new blocks in the blockchain by solving extremely complex mathematical problems. When a problem is solved, a miner receives a predetermined reward. Today, mining involves:

📛 High entry barrier — costs for equipment and energy for mining.
📛 Increasing mining difficulty — the more miners there are, the harder it is to mine a block and get a reward.
📛 Centralization of mining — major companies like Marathon Digital Holdings already control a large part of Bitcoin mining.
📛 Regulation and legislation — mining is restricted or even banned in some countries.

▶️ Staking is a process when users freeze cryptocurrency in their wallets to support the blockchain's operation. In return, they get rewards. However, its drawbacks include:

📛 Technical skills — understanding basic blockchain technology terms is crucial.
📛 Lower liquidity — when you freeze tokens, you can't use them.
📛 Rising inflation — the constant creation of new tokens for rewards can lead to inflation or a decrease in token value.
📛 Uncertain rewards — rewards will vary depending on the number of locked tokens and network conditions.

▶️ Splitting is an innovative technology that combines the best aspects of mining and staking. By providing liquidity to pools, users get rewards in ULTIMA tokens. Splitting advantages are:

✅ No special knowledge required — the technology is simple and understandable even for a beginner crypto enthusiast.
✅ Low entry barrier — splitting does not require expensive equipment; all you need is a smartphone and the SMART WALLET installed.
✅ Potentially high profit — the earlier a user joins the pool and the more splits they have, the higher their rewards in ULTIMA.
✅ Transparency and security — all transactions are under strict control by the block explorer, smartexplorer.com. The secure SMART WALLET allows setting a passphrase or using the cold wallet SMART DEFENDER.
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