Definition of mining
Appearance and creation of mining
Crypto-currency mining emerged in 2009 with the creation of the Bitcoin blockchain. CryptoRobin.fr defines this concept as “a process in which transactions for different types of cryptocurrencies are verified and then added to the blockchain’s digital ledger. Computers do the verification work themselves and are programmed to solve difficult cryptographic puzzles to verify transactions.”
Thus, mining is about verifying the validity of a set of transactions on a blockchain. To do this, some cryptocurrencies use the “Proof of work” technique.
Who performs this action?
The miner, who performs the mining activity, has to solve mathematical problems, i.e. he has to find the hash with the right combination. The miner is rewarded by receiving payments in cryptocurrency for his contribution.
One can mine alone or in a group in a mining pool in order to unite the computing power and be more efficient.
What is the purpose of mining?
The purpose of this process is to generate crypto-currencies and validate one’s transactions.