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Over the past few years, cryptocurrencies have emerged as a highly popular form of payment and investment, particularly for those who do most of their shopping online. In the near future, they will certainly qualify for the status of a full-fledged global payment instrument. The crypto system will replace the traditional banking system as early as the coming decade. However, the creation of a cryptocurrency isnt as straight forward as simply printing a bank note. Have you ever wondered how Bitcoins or other cryptocurrencies are actually made? Bitcoin and most other cryptocurrencies on the market are generated through a process known as ‘mining’.
Cryptocurrency mining includes two functions: adding transactions to the blockchain (securing and verifying) and also releasing new currency. The role of miners is to secure the network and to process every transaction. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions. Without miners, the network would be attacked and dysfunctional.