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Myles

What is cryptocurrency mining?

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Hello Myles,

Cryptocurrencies have recently become popular among many people. And a good number of countries have been adopting the use of cryptocurrencies. These digital currencies can either be used as a form of investment or even purchase products online.
Bitcoin, for example, has been attracting many investors due to its varying price, which has recently been on the verge of recovering; this has not only made investors invest in it but also has the urge to mine their Bitcoins.
Coming up with a cryptocurrency is not as simple as just printing coins and note as it is usually like for other fiat currencies. The way to come up with these digital currencies is by mining them.
When you buy or sell a cryptocurrency, a blockchain will record this transaction. A blockchain is a public ledger whose aim is to keep up with cryptocurrency activities and report any transaction.
The users of this network, however, need to verify these transactions so that they are valid.
The mining of cryptocurrencies involves issuing the network users with the coins for verifying these transactions.
A node, which is usually the miner, typically gathers the transactions that are taking place and sorts them out into blocks. Any time a transaction is made, the network nodes will receive the transactions and check if they are valid. The minor nodes will then assemble the transactions and assemble them into a candidate block.
The mining process introduces new coins among the existing ones; this is one essential element that allows cryptocurrencies to operate without a third party.

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