What is mining? Crypto-mining for Beginners

Key components involved in the process of mining:

  1. Nodes: These are the individual computers in the blockchain network that verify transactions and add them to the blockchain. They are also called miners.
  2. Transaction: A transaction is the exchange of cryptocurrency between two parties using their crypto wallets.
  3. Hash: These are the cryptographic functions that help nodes in verifying the transaction. The data is encrypted in the form of a hash. Nodes validate it through trial and error to confirm the transaction.
  4. Consensus algorithm: These are the set of agreed rules followed by every node in the blockchain network to validate a transaction. The two most famous algorithms are proof-of-work and proof-of-stake. The process of mining is used in proof-of-work.
  5. Blocks: A block is like a page in the blockchain that contains details about the transaction like sender and receivers wallet address, time of the transaction, and address of the previous block.

How does crypto-mining work:




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