What is Bitcoin Mining? The Complete Guide — Bitcoin Magazine

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What is bitcoin mining?

Bit­coin min­ing is the pil­lar that keeps the Bit­coin sys­tem upright, func­tion­ing, and thriv­ing. It is based on a type of gov­er­nance mech­a­nism called a dis­trib­uted proof-of-work (PoW), designed to incen­tivize par­tic­i­pa­tion and facil­i­tate Bitcoin’s net­work growth, secu­ri­ty, and decentralization.

​​Bit­coin issuance is iden­ti­fied as min­ing because it recalls min­ing gold and oth­er min­er­als, even though there’s no dig­ging deep under­ground or in caves. In short, bit­coin min­ing can be explained as the process that enters new bit­coin into cir­cu­la­tion and adds new trans­ac­tions to the Bit­coin timechain (also called a blockchain).

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