Crypto mining is the process used by proof-of-work blockchains to confirm transactions and add new blocks. Miners use specialized hardware to compete in solving difficult cryptographic puzzles.
Why mining exists
Mining makes it expensive to rewrite the blockchain history. On networks such as Bitcoin, miners help secure the ledger and are rewarded with new coins and transaction fees.
Mining is not free money
Mining requires hardware, electricity, cooling, maintenance, and technical knowledge. Profit depends on coin price, mining difficulty, energy cost, and the efficiency of the equipment.
Some cryptocurrencies use proof of stake instead, where validators secure the network by staking coins rather than running energy-intensive mining equipment.