Glossary

Mining

Plain-language definition Crypto glossary

Key takeaways

Mining is the process of using computational work to validate transactions and add new blocks to a proof-of-work blockchain, with miners rewarded in newly issued coins and transaction fees.
Miners assemble pending transactions into a candidate block and repeatedly hash it searching for a result that meets the network's difficulty target, which requires large amounts of computing power and electricity.
Mining secures a proof-of-work network and distributes new supply without a central issuer, though its energy use is the main point of debate.

Definition

Mining is the process of using computational work to validate transactions and add new blocks to a proof-of-work blockchain. Miners are rewarded with newly issued coins and transaction fees for the work they contribute.

How it works

Miners assemble pending transactions into a candidate block and repeatedly hash it, searching for a result that meets the network’s difficulty target. Because each attempt is essentially a guess, success requires large amounts of computing power and electricity. The first miner to find a valid block broadcasts it, the network verifies it, and that miner collects the block reward.

Why it matters

Mining is what secures a proof-of-work network and distributes new supply without a central issuer. Its energy use is the main point of debate, and on the largest networks the cost of equipment has pushed mining toward specialised ASIC hardware and large pools.

Example

Bitcoin miners run warehouses of ASIC machines, while networks designed to resist ASICs aim to keep mining accessible to ordinary hardware.

FAQ

Frequently asked questions

How does mining secure a blockchain?

Miners spend real computing power and electricity to find a valid block that meets the difficulty target, and the network verifies each block before accepting it. This costly work is what makes a proof-of-work network secure and distributes new supply without a central issuer.

Why does mining use so much energy?

Each hashing attempt is essentially a guess, so finding a valid block requires enormous numbers of attempts and therefore large amounts of computing power and electricity. This energy use is the main point of debate around proof-of-work mining.

Why has mining moved toward specialized hardware and pools?

On the largest networks, the cost and competition of mining have pushed it toward specialized ASIC hardware that hashes far more efficiently than general computers. Miners also join large pools to combine resources and earn steadier rewards.