Mining, in the context of cryptocurrencies, refers to the process of validating and adding new transactions to the blockchain ledger. It is a vital mechanism that ensures the security, decentralization, and functionality of various digital currencies.
Miners use powerful computer hardware to solve complex mathematical puzzles, known as proof-of-work (PoW) algorithms, in a competitive race to be the first to find the correct solution. The successful miner is then authorized to add a new block of verified transactions to the blockchain. As a reward for their efforts, miners typically receive newly minted cryptocurrency coins and transaction fees from the transactions included in the block.