Mining (cryptocurrency)

A process of creating new blocks of information about transactions conducted in a cryptocurrency (i.e. bitcoin) and adding them to the incorruptible and continuous digital ledger called ‘blockchain’. Every new block contains the information about the transactions that were conducted from the moment of creating the previous block.

The purposes of mining include confirmation and verification of transactions in cryptocurrency units (called “tokens”) and including new tokens into the system (tokens also are the profit of miners).

The process is resource intensive and requires high computing power. In addition, the complexity of the calculations increases constantly and there is the limited number of tokens, which is possible to exist within any system, which is specially designed to regulate the number of blocks generated each day.