What is mining and how does it work?

The people who work in mines are called miners. People dig mines to get such things as diamonds, coal, silver, salt, and many other materials . When a mine provides stone for building, it is called a quarry. Drilling into Earth for petroleum, or oil, is another special type of mining.

“Mining” is performed using sophisticated hardware that solves an extremely complex computational math problem . The first computer to find the solution to the problem receives the next block of bitcoins and the process begins again.

Mining is the process that Bitcoin and several other cryptocurrencies use to generate new coins and verify new transactions . It involves vast, decentralized networks of computers around the world that verify and secure blockchains – the virtual ledgers that document cryptocurrency transactions.

Bitcoin mining is the process of earning bitcoins by running the verification process to validate Bitcoin transactions. Miners earn rewards in the form of bitcoin for running the validation process .