Mining

Mining is a process in which transactions for various forms of cryptocurrencies are added to the digital blockchain ledger.

A miner conducting the mining process competes with other crypto miners that have complicated mathematical tasks to solve using cryptographic hash functions associated with a block of transaction data.

The first miner who solves the task is rewarded by being able to authorize the transaction. In return for the service (electricity) provided, he receives a share of the respective cryptocurrency. In order to compete with other crypto miners, a computer with special hardware is required (see also -> Asic).

Theoretically everyone can become a miner, but for most it is not worth it, because the financial expenditure in the form of electricity and hardware is high.

Therefore many so-called “Mining Pools” have emerged. There the billing services of the participants are bundled and the wages for the mining are shared.

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