Mining (Crypto)

The process of validating transactions and creating new coins by solving computational puzzles.

Mining (Crypto) is how proof-of-work blockchains like Bitcoin validate transactions and add new blocks: computers compete to solve a computationally difficult puzzle, and the winner earns newly created coins plus transaction fees. As more miners compete, the puzzle's difficulty adjusts, so the reward keeps flowing at a roughly steady pace regardless of how much total computing power joins in.

Mining (Crypto) involves no shovels at all: his rig of specialized computers raced to solve puzzles around the clock, and he hoped the block rewards would cover the electricity bill.