What is Crypto Mining ?
Crypto mining is the process of verifying cryptocurrency transactions on a blockchain network and adding them to a shared ledger. Most importantly, crypto mining prevents digital currency from being spent twice on a distributed network.
As with real money, when one member spends cryptocurrency, a ledger must be updated. This means debiting one account and crediting another. However, the problem with a digital currency is that digital platforms can be changed. Bitcoin's distributed ledger, on the other hand, only allows miners who have been verified to update transactions on the digital ledger. This means that miners have to make sure the network doesn't double-spend.
Meanwhile, new coins are generated to reward miners for their work to keep the network secure. Because distributed ledgers don't have a single authority, the mining process is crucial for validating transactions. Miners, on the other hand, are motivated to keep the network secure by taking part in the process of verifying transactions, which increases their likelihood of receiving new coins.
In order to ensure that only users who have been verified as crypto miners can mine and validate transactions, a consensus protocol called proof-of-work (PoW) has been set up. PoW also protects the network from external threats.
How Crypto Mining Works