Mining is the process of computers validating transactions within a cryptocurrency’s network. By doing this, they add blocks onto the blockchain. Each network participant – known as a miner – collects unverified transactions independently in order to create a new block.
A block is a file in that stores transaction records. These records show all the movements of cryptocurrency from one address to another. Each block gets connected to the previous block if all other computers confirm it as valid.
Computers compete to connect the block to the chain first by solving complex mathematical equations. The first successful computer earns a certain number of BTC as a reward. It also gets all the transaction fees from users. These rewards act as incentives for miners to participate in and maintain the network.
