Mining in the context of cryptocurrency is the process of using computing power to process transactions, secure the network, and keep all users of the system in sync. This process is carried out using computer hardware (e.g. GPU or ASIC) to solve complex mathematical algorithms on the blockchain.
The party who carries out mining is called a miner, aka miner. They collect transactions in blocks and try to solve a cryptographic puzzle that, if successfully solved, will allow the block to be added to the blockchain. As a reward for their efforts, miners are usually rewarded in the form of cryptocurrency, such as Bitcoin.
This mining process requires a lot of computing power and energy, and the more miners competing to solve a puzzle, the more difficult the puzzle becomes. This creates what is known as 'mining difficulty', which adjusts to ensure that the average time to find a block remains consistent.
It is important to note that mining has a significant environmental impact due to its large use of electrical energy, which has been a topic of debate and discussion among the crypto and environmental communities.
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