Mining is the process by which computers on a Proof of Work network, such as Bitcoin, validate transactions and add new blocks. Miners compete to solve a hard mathematical puzzle.

How it works

The first to solve the puzzle earns the right to add the next block and receives a block reward of new coins plus fees. This competition secures the network but uses significant computing power and energy.

Where it applies

Mining is only used by Proof of Work networks. Proof of Stake networks rely on validators and staking instead.