Mining

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Mining is the process by which new digital coins are created and new transactions are verified and added to a blockchain’s public ledger. This crucial activity is performed by individuals or entities known as “miners” who dedicate significant computing power to solve complex mathematical problems.

When a transaction is made on a blockchain network, it is bundled together with other pending transactions into a “block.” Miners then compete to be the first to validate this block by solving the cryptographic puzzle associated with it. The first miner to successfully solve the puzzle adds the block to the existing chain, and in return for their computational effort and resources, they are rewarded with a predetermined amount of the cryptocurrency and any transaction fees associated with the transactions in that block.

This process serves two primary functions: it confirms transactions in a decentralized and trustless manner, and it introduces new coins into circulation, similar to how traditional mining unearths precious metals.

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