What Is Mining?
Mining is the process by which certain blockchain networks validate transactions and add them to the public ledger, known as the blockchain. In systems that use Proof of Work (PoW), such as Bitcoin (BTC), miners compete to solve complex mathematical puzzles using computing power. The first miner to find a valid solution earns the right to create the next block of transactions.
Once a new block is formed, the transaction data it contains becomes part of the permanent blockchain record. As a reward for their effort and resources, miners receive newly minted cryptocurrency and transaction fees from the block they added. This reward mechanism both issues new coins and incentivizes participants to secure the network.
Mining requires specialized hardware and significant energy, and the difficulty of solving puzzles adjusts over time to maintain a steady rate of block production. Mining supports the decentralization and integrity of networks by making it costly to attack or alter the ledger.
