What is Mining?

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  • Mining is a term used for validating Cryptocurrency transactions online – verifying each block within the Blockchain

 

  • Each verified block requires Proof Of Work or POW (solving of a mathematical problem)

 

  • The people who mine are known as ‘Miners’ (the person who collects the transactions in order to verify them, as there is no central authority to do this online)

 

  • For each successful mining transaction, miners receive payment in Cryptocurrency – currently 12.5 bitcoins

 

  • Mining requires a computer and special programming software

 

  • Mining also requires a lot of resources, including huge energy consumption making it expensive to run.

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