Mining

Short Description:

The process of using computer power to validate transactions on a blockchain and earn new units of a cryptocurrency as a reward. This is only used in “proof of work” networks.

Main Description:

Mining refers to the process of validating and verifying transactions on a blockchain network by solving complex mathematical problems using computational power. Miners use specialized hardware and software to compete in solving these mathematical puzzles, aiming to be the first to find a solution. Successful miners are rewarded with newly minted cryptocurrency tokens or transaction fees. Mining plays a crucial role in maintaining the security, integrity, and decentralization of a blockchain network, ensuring the immutability of transactions and the prevention of double-spending.