🚀 What is #mining and how does it work? 💡

Mining is the backbone of blockchain networks like Bitcoin. It involves powerful computers solving complex mathematical puzzles to validate transactions and secure the network. When a miner successfully solves a problem, they add a new block to the blockchain and earn cryptocurrency as a reward. This process ensures all transactions are legitimate and prevents issues like double-spending.

The computational work needed to solve these problems requires immense processing power, which in turn consumes a significant amount of energy. Despite the high resource demand, mining is crucial for maintaining the decentralized nature of cryptocurrencies. It not only verifies transactions but also introduces new coins into circulation.

However, the energy consumption of mining has raised environmental concerns, leading to the development of more sustainable practices and alternative consensus mechanisms like Proof of Stake (PoS).