Mining

Share This

Meaning of Mining

Mining is the term used for discovering and solving blocks along the blockchain. A reward is given for solving the algorithm and lengthening the chain, called a mining reward.

The mining reward for the Bitcoin Blockchain is Bitcoin.

Mining is known to serve two major purposes;

1) Mining verify the legitimacy of a transaction

2) Mining creates new digital currencies through the process of rewarding miners for performing the task 1 above.

« Back to Dictionary Index