How does cryptocurrency mining work?

[XKUBI]

Cryptocurrency mining is the process by which new units of a cryptocurrency are created and transactions are added to the blockchain. The process involves solving complex mathematical problems that validate and secure transactions on the network. Here's a general overview of how cryptocurrency mining works:

1. Transactions: Users initiate transactions by sending cryptocurrency from one address to another. These transactions are broadcast to the network and collected in a pool of unconfirmed transactions.
2. Block Formation: Miners select a set of transactions from the pool and organize them into a block. A block is a collection of transactions with a header containing metadata.
3. Proof of Work (PoW): Most cryptocurrencies, including Bitcoin, use a consensus algorithm called Proof of Work. Miners compete to solve a cryptographic puzzle related to the block's header. This puzzle is computationally intensive and requires significant processing power to solve.

 

[Abdulhamid01]

Wow, I actually don't know how cryptocurrency mining works but I have been mining crypto coins on my phone even without having knowledge of how the mining process is brought about .

 

[Suba]

Bitcoin mining work is basically the process of verifying and adding transactions to new blocks, of course first the miner must be able to solve complex mathematical puzzles, for this the miner is assisted by mining hardware and software. Bitcoin transactions will be verified in batches.