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Farran Powell Verified by an expert. Mining-based Altcoins Mining-based altcoins are cryptocurrencies that utilize a mining process to validate and add transactions to their respective blockchains. Transactions are verified and recorded on a transparent public ledger utilizing blockchain technology. The system allows you to use ether the currency to perform a number of functions, but the smart contract aspect of Ethereum helps make it a popular currency. Bankrate follows a strict editorial policy , so you can trust that our content is honest and accurate.
