Mining refers to the process of verifying transactions on a cryptocurrency network. Miners use powerful computers to solve complex mathematical equations that validate and confirm transactions, adding them to the public ledger known as the blockchain.
Miners compete against each other to solve these equations, with the first to do so receiving a reward in the form of newly created coins. This process is known as proof-of-work, as miners must demonstrate proof that they have expended computational power to secure the network.
In addition to verifying transactions, miners also play a critical role in maintaining the security and integrity of the network. By ensuring that transactions are legitimate and adding them to the blockchain in a timely manner, miners help prevent double-spending and other fraudulent activities.
Overall, mining is essential to the functioning of a cryptocurrency network, as it provides the incentive for miners to participate and helps ensure the decentralized nature of the system.
