In an earlier article, I discussed why the process of mining is essential for Bitcoin and other cryptocurrencies and I gave a very generic overview of how it works. In this post, I will attempt to explain in more detail what the mining process entails.
Mining is one of the more mysterious aspects of Bitcoin and other cryptocurrencies. It is often described by vague statements such as “miners try to find new coins”, “miners solve puzzles for coin rewards”, “miners verify transactions”, etc… This is coupled with a sentiment among new Bitcoin-users that mining is *the* way to obtain bitcoins and that obtaining coins through mining is somehow one of the main purposes of a cryptocurrency. In this post, I will delve into the details of the mining process, discuss its purpose and how it works.