Binance Academy
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What is cryptocurrency mining and how does it work?
Summary
Cryptocurrency mining verifies and validates blockchain transactions. It also refers to the process of creating new units of cryptocurrencies.
The work performed by miners requires intensive computing resources, but it is what keeps a blockchain network secure.
What is cryptocurrency mining?
Cryptocurrency mining ensures the security and decentralization of cryptocurrencies such as Bitcoin, which are based on a proof-of-work (PoW) consensus mechanism. Mining is the process by which cryptocurrency transactions between users are verified and added to the public blockchain ledger. As such, mining is an essential element that allows Bitcoin to operate without the need for a central authority.
Cryptocurrency mining verifies and validates blockchain transactions. It also refers to the process of creating new units of cryptocurrencies.
The work performed by miners requires intensive computing resources, but it is what keeps a blockchain network secure.
What is cryptocurrency mining?
Cryptocurrency mining ensures the security and decentralization of cryptocurrencies such as Bitcoin, which are based on a proof-of-work (PoW) consensus mechanism. Mining is the process by which cryptocurrency transactions between users are verified and added to the public blockchain ledger. As such, mining is an essential element that allows Bitcoin to operate without the need for a central authority.
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