Halving

Halving is the process of reducing the reward given to cryptocurrency miners for validating transactions on a blockchain network. This reduction happens at specific intervals and cuts the reward by half. The primary reason for halving is to control the rate of inflation and issuance of new coins. It is designed to prevent the unlimited supply of cryptocurrencies and gradually reduce the production of new coins until it reaches its maximum supply. Halving is also done to maintain the balance between supply and demand. A sudden increase in the supply of cryptocurrencies can lead to an oversupply, which can result in a drop in value. By gradually reducing the supply of new coins through halving, it helps to maintain the balance and prevent significant fluctuations in the value of cryptocurrencies.