In Cryptocurrency, halving refers to an event when the tokens and rewards are distributed in halves. With halving, the rewards owned by the miners are significantly reduced so that new cryptocurrencies can be created. Halving ensures that the crypto is issued at a constant rate and their value would progressively increase.
Halving happens every four years when the miners get only 50% of the rewards. Its main function is to reduce crypto’s supply and increase its scarcity. If this process wouldn’t have come into existence, then cryptocurrencies would have been mined already. We all know that cryptocurrencies can’t be created endlessly. So halving is very crucial to keep the blockchain network operational.