Cryptocurrency mining is the process of verifying transactions and creating new units of digital currency. It involves solving complex mathematical problems using computer processors to validate and secure blockchains, the virtual ledgers that document cryptocurrency transactions. The mining process is designed to be difficult and resource-intensive, as it requires a significant amount of computational power and energy. Miners compete to solve these problems and are rewarded with newly minted cryptocurrency for their efforts. This is how new coins are generated in a decentralized manner, without the need for a central authority.
Proof-of-work is the consensus algorithm used by most cryptocurrencies, including Bitcoin, to validate transactions and create new coins. Miners must prove they have done a certain amount of computational work in order to add a new block to the blockchain. This work is measured in hashes, which are mathematical functions that take an input and produce a fixed-length output. The more hashes a miner can produce, the greater their chances of solving the mathematical problem and being rewarded with new coins. The mining process also helps to secure the network by making it difficult for any one individual or group to control a majority of the computational power and manipulate the blockchain. This ensures the security and decentralization of the cryptocurrency.