Mining: Mining in the context of cryptocurrency refers to the computational process of verifying and adding transactions to the blockchain ledger. This process involves solving complex cryptographic puzzles using specialized computer hardware. Miners play a critical role in maintaining the integrity and security of the blockchain network. As they validate transactions, miners help to prevent issues like double-spending.
In return for their services, miners are rewarded with transaction fees and newly generated units of the cryptocurrency, such as Bitcoin. This incentivizes miners to continue contributing their computational power to the network. The mining process is fundamental to proof-of-work blockchain systems, where it serves as a mechanism to achieve consensus and introduce new currency into circulation.