The Crypto Korner #12 // The newsletter to learn about Blockchain, crypto and web3

Hi, I'm Javier Perez (Linkedln/Twitter), a Blockchain enthusiast. Welcome to our newsletter where we talk about blockchain, crypto and web3.

It is essential to understand the key elements that make up the blockchain, without which Blockchain technology would be useless or meaningless. Because of this, it is so important to know the elements that make up the Blockchain to understand its operation.

In today's article we are gonna explain the 4th concept of these Blockchain elements.

So, let's begin with the class:

Blockchain Elements #4 Mining

Cryptocurrency mining is a fundamental process that underlies the security and integrity of many blockchain networks. It involves using computer equipment to solve complex mathematical problems in exchange for a reward, typically in the form of a cryptocurrency.

In the case of cryptocurrencies like Bitcoin, mining involves finding the correct solution that matches the hash of the block in question. Miners play a vital role in providing the computational power required to solve the mathematical problem. The more computational power used, the higher the probability of mining the correct block and updating the blockchain with new transactions.

The miner who successfully validates the new block is rewarded by the network with a predetermined amount of cryptocurrencies, and in the case of Bitcoin, this is how new Bitcoins are created up to a maximum limit, providing control of the network.

In the next infography you can see how the process works:

Overall, mining is an essential component of the cryptocurrency ecosystem that relies on the computational power provided by miners to secure and validate transactions. The process is designed to ensure that the network remains decentralized and secure, and new cryptocurrencies are introduced in a controlled manner.