Crypto mining.
In plain English
Crypto mining is how some blockchains, most famously Bitcoin, add new transactions and create new coins. Around the world, specialized computers race to solve a hard math puzzle, and the first to solve it gets to add the next block of transactions and earn a reward in new coins plus fees. This process, called proof of work, is what keeps the network secure and agreed-upon without a central authority. It also uses a large amount of electricity, which is why some networks, including Ethereum, have moved to a different method called proof of stake that does not rely on mining.
01Why it matters
Mining is what secures proof-of-work networks and controls how new coins enter circulation, so it shapes both the reliability and the supply of the crypto you might hold.
02The math, step by step
A Bitcoin miner runs specialized machines that consume electricity around the clock. When their machine wins the race to add a block, they receive newly issued Bitcoin plus the transaction fees in that block as the reward for the work.
03What this is NOT
Mining does NOT unearth pre-existing coins. It is the computing work that validates transactions and, as a reward, creates brand-new coins on a set schedule.
04Receipts
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