What Is Bitcoin Mining?
Bitcoin mining refers to ensuring that transactions are valid and added to the Bitcoin blockchain correctly using a global network of computers running the Bitcoin code. The process of mining is also the means by which new Bitcoins are created.
- The process of bitcoin mining involves the verification of new transactions against the Bitcoin network, which results in the production of new bitcoins.
- Bitcoin mining is the process by which Bitcoin transactions are validated digitally on the Bitcoin network and added to the blockchain ledger.
- It is done by solving complex cryptographic hash puzzles to verify blocks of transactions that are updated on the decentralized blockchain ledger.
Solving these puzzles requires powerful computing power and sophisticated equipment. In return, miners are rewarded with Bitcoin, which is then released into circulation hence the name Bitcoin mining.