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Mining is the activity of creating new blocks on the blockchain. For the creation of the next structural unit (block of blockchain), remuneration is usually provided in the form of new (issued) cryptocurrency units and/or commission fees.

Usually, the term "mining" is applied to the blockchain of Bitcoin and other cryptocurrencies, the extraction of which is reduced to a series of calculations with a search of parameters to find the hash. These calculations are performed by machines (Asics, video cards, mining farms).

Different cryptocurrencies use different calculation models, but they are always long enough in time to find an acceptable option and fast enough to verify the solution found (see PoW). Such calculations are used by cryptocurrency algorithms to provide protection against repeated spending of the same units, and the reward encourages people to spend their computing power and maintain the operation of networks.

Mining is not the only technology for creating new blocks and ensuring emissions. The alternative is forging (minting). Usually, only one technology is used but some cryptocurrencies use combinations of them.

See also

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