Most people think that cryptocurrency mining is simply a way of generating new coins or tokens, however the process and technology behind mining is quite complex.
So now, what is crypto mining and how does it work? By definition, mining is the process by which networks of specialized computers generate and release new cryptocurrencies and verify new transactions to a distributed ledger. This uses an extensive decentralized network of computers around the world that verify and secure blockchains, and in return miners are incentivised or rewarded for their work in securing the network.
In order to ensure that only verified crypto miners can mine and validate transactions, a proof-of-work (PoW) or a proof-of-stake (PoS) consensus protocol is used which we will cover in our next crypto conversation!