Why is Crypto Mining Called Mining?

Crypto mining uses the term "mining" for a couple of reasons, even though it doesn't involve physically extracting anything from the ground. Here's the connection:

1. Similar Reward System:?Traditional mining involves extracting valuable resources like gold or diamonds. These resources are finite and require effort to unearth. Similarly, crypto mining involves using computational power to solve complex puzzles to earn new coins. The coins, like the extracted minerals, are a form of limited-resource reward for the work done.
2. Uncovering New Resources:?In traditional mining, the process uncovers previously hidden resources. In crypto mining, the computational process unveils new coins that enter circulation for the first time. Although they aren't physical, these new coins are being brought into existence through the mining effort.

While there's no physical extraction involved, crypto mining uses the term "mining" to reflect the effort required to unearth new resources (coins) within the digital landscape. It's a way to conceptualize the process of generating new cryptocurrency and the competition involved in solving the puzzles.