Definition
Mining is the process used in some blockchains to create new blocks of transactions and add them to the chain. It relies on computers competing to solve a mathematical puzzle. The first miner to solve it earns the right to propose the next block and may receive newly created coins and transaction fees as a reward.
In Simple Terms
Mining is a competition between computers to win the chance to add the next page of transactions to a blockchain. The winning computer’s owner is rewarded with some coins and fees. This process keeps the blockchain running and helps make sure that the information recorded on it is trustworthy.
Context and Usage
Mining is most commonly mentioned in connection with proof-of-work blockchains. It is discussed when talking about how new coins enter circulation, how blocks are added, and how network security is maintained. Conversations about energy use, specialized hardware, and alternatives to proof-of-work often refer back to the role that mining plays in a blockchain network.