What does 'mining' refer to in the context of cryptocurrencies?

  • Digital currency exchange
  • Generating new coins through computational work
  • Process of validating and adding transactions to the blockchain
  • Verifying user identities
In the context of cryptocurrencies, 'mining' refers to the process of validating and adding transactions to the blockchain. Miners use computational power to solve complex mathematical problems, and once solved, they add a new block to the blockchain. This process ensures the integrity and security of the cryptocurrency network. Understanding the role of mining is fundamental to comprehending the decentralized nature of cryptocurrencies like Bitcoin.__________________________________________________
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