Definition
A miner is an entity, often an individual or organization, that contributes computing resources to a blockchain network to help process and confirm transactions. In proof-of-work systems, miners compete to solve computational puzzles, and the first to solve one earns the right to add a new block of transactions to the blockchain. As compensation for this work, miners typically receive newly created cryptocurrency units and sometimes transaction fees paid by users. Miners play a central role in maintaining the security and integrity of many public blockchains.
In Simple Terms
A miner can be thought of as a digital record keeper for a blockchain. They gather pending transactions, check that they follow the rules, and then package them into a block that becomes part of the permanent chain. Because they invest computing power and electricity, miners are rewarded with cryptocurrency when they successfully add a block. Without miners, many blockchains would not be able to operate securely or keep an agreed-upon history of transactions.
Context and Usage
The term miner is most closely associated with proof-of-work blockchains, where security depends on the total computing power contributed by miners. Miners can operate alone or in groups called mining pools, combining resources to increase their chances of earning rewards. In everyday blockchain discussions, referring to miners usually implies the set of participants responsible for validating transactions, proposing new blocks, and helping protect the network against fraud and attacks. As blockchain designs evolve, the specific role and economic incentives of miners may differ across networks, but the core idea of securing and extending the ledger remains the same.