Covalent$CXT

What is Covalent Crypto?

The Covalent Network is a global, virtual cooperative for blockchain data. It is governed by the Covalent Query Token (CQT) and is designed to resemble a cooperative for blockchain data. The network is designed to provide a platform for the mining and distribution of tokens, with the consensus algorithm rewarding the production of block specimens.

How can I mine Covalent tokens?

Mining tokens on the Covalent Network involves a process similar to that of Proof-of-Work (PoW) systems. The protocol mints new tokens to reward active validators, thereby diluting inactive token holders. The consensus algorithm intrinsic to the network rewards the production of block specimens. It's important to note that the mining process in PoW systems can be expensive, requiring specialized hardware capable of executing several megahashes per second at significant electricity costs.

How can I optimize my Covalent mining rewards?

Optimizing mining rewards in the Covalent Network involves careful selection of network connections. To maximize rewards, a miner must ensure the existence of paths to other miners that have, on average, lower latency compared to paths between other miners. This involves a strategic choice of network connections to minimize latency and maximize the number of mined blocks in the blockchain. Covalent has also built a "What-If ROI tool" for staking networks to address the "opportunity cost risk" for investors in staking networks.