The process where the miners on the blockchain network compete to make a successful transaction and to add new blocks on the blockchain network is called mining. Blockchain mining involves adding new blocks to the blockchains by successfully completing the transactions which are done by miners.
Process of Mining
- Blockchain network consists of a number of nodes or computers connected to each other in a distributed, peer to peer network.
- Whenever a request for a transaction is made on the blockchain network, the miners on the network compete with each other to complete the transaction.
- The miners compete in solving complex mathematical problems with each other to be able to solve the problem.
- The miners who are able to solve the complex mathematical problems faster than the others using the Proof of Work mechanism are said to be successful.
- The successful miners are the ones who will be able to add the new blocks to the blockchain network.
- These successful miners are given a reward usually in the form of crypto tokens for successfully adding a new block to the blockchain network.
- The central distributed ledger is updated with all the newly added successful transactions.