technicalfundamentals

Mining

Definition

Miners run specialized hardware that races to solve a mathematical puzzle for each new block. The first miner to find a valid solution earns newly created bitcoin plus transaction fees, and the verified block is added to the blockchain for all nodes to see.

Example

Miners compete to solve mathematical puzzles, and the winner gets to add the next block and earn Bitcoin.

Related Terms

Bitcoin

A decentralized digital currency that operates without a central bank or single administrator.

Blockchain

A public, distributed ledger that records all Bitcoin transactions in chronological order.

Halving

An event that cuts the Bitcoin block reward in half approximately every four years.

Block reward

The amount of new Bitcoin a miner receives for successfully adding a block to the blockchain.

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