What Is Mining? Meaning & Example
Definition
Mining is the process of using computing power to validate transactions and add new blocks in proof-of-work blockchains. Miners earn newly created coins and fees as rewards.
Related terms
Proof of work is a consensus method where miners spend computing energy to earn the right to add blocks. It makes attacking the network very expensive.
BitcoinBitcoin is the first and best-known cryptocurrency, designed as decentralized digital money with a fixed maximum supply. It uses proof of work to secure its network.
HalvingA halving is a scheduled event that cuts the reward for mining new blocks in half. It slows the rate at which new coins enter circulation.
What is Mining?
Mining is the process of using computing power to validate transactions and add new blocks in proof-of-work blockchains. Miners earn newly created coins and fees as rewards.
Can you give an example of Mining?
Bitcoin miners compete to solve a puzzle, and the winner adds the next block and earns the reward.