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Mining (Blockchain)
5 months ago
21
Finance & Crypto
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Mining refers to the process by which transactions are verified and added to the public ledger, known as the blockchain. Miners use specialized computer hardware to solve complex mathematical problems that validate these transactions.
This process requires significant computational power and energy, making it competitive, as the first miner to solve the problem gets to add the block of transactions to the blockchain. Once added, the block is broadcasted to the network, and the miner is usually rewarded with cryptocurrency.
This activity not only secures the network by confirming transactions but also introduces new coins into circulation, maintaining the economic balance of the cryptocurrency.
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