Crypto mining is how some cryptocurrencies, like Bitcoin, create new coins and keep their network secure.
Here’re the basics:
- Powerful Computers: Miners use special computers to solve complex math problems.
- Race to Win: The first miner to solve the problem gets to add a new “block” of transactions to the blockchain (the giant list of all transactions on the network).
- Rewards: As a reward for their work, the winning miner gets some brand-new cryptocurrency.
Why Does Crypto Mining Matter?
- New Coins: This is how new coins enter the system. Without miners, the supply of coins wouldn’t grow.
- Security: The process of mining also helps verify transactions and makes sure no one cheats the system.
Important to Know
- Competition: Lots of miners all over the world compete to win these rewards.
- Energy Use: Mining, especially for Bitcoin, uses a LOT of electricity. This is a major criticism of the process.
- Not All Crypto is Mined: Some cryptocurrencies, like Ethereum (after the Merge), use a different system called Proof-of-Stake.
The Big Idea: Crypto mining is like a giant puzzle-solving competition that powers some cryptocurrency networks.
