Not Your Grandpa’s Mine
Cryptocurrency mining is the process of verifying transactions and adding them to a public ledger called a blockchain. Miners use specialized software and hardware to solve complex mathematical problems that are a result of the cryptographic functions that secure the transactions. When a miner solves a problem, they are rewarded with a certain amount of cryptocurrency, which incentivizes them to continue the process. As more miners participate in the network, the difficulty of the problems increases to maintain a stable rate of block production, which helps to prevent the inflation of the cryptocurrency.
While mining can be lucrative, the processing power required for larger blockchains is substantial.
Mining is one of the brst examples of the decentralized nature of cryptocurrencies and the accessibility of the verification process to anyone with the resources to commit to it.