How does cryptocurrency mining work? 🔊
Cryptocurrency mining involves validating transactions and adding them to a blockchain network through computational power. Miners solve complex mathematical puzzles, which require significant processing resources, to verify and confirm transaction legitimacy. This process not only secures the network but also generates new units of cryptocurrency as a reward for miners' efforts. Successful miners compete for rewards, incentivizing the maintenance of the network's integrity. The difficulty of mining adjusts over time based on network activity, ensuring a constant rate of currency generation, which contributes to the equilibrium of the cryptocurrency ecosystem.
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