Mining is the process by which transactions are verified and added to the blockchain, and new coins are minted. This is accomplished by solving complex mathematical puzzles using significant computational power.
Miners compete to solve these puzzles, and the first to find a solution is rewarded with new coins along with transaction fees. This incentive system secures the network and encourages participation.
Mining is fundamental to the operation of proof-of-work (PoW) blockchains such as Bitcoin, though it requires substantial energy and specialized hardware.
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