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Mining – Why do we need it and how does it work?

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.

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