Mining
The Proof of Work process of racing to solve a puzzle, win the right to propose a block, and earn the block reward.
Mining is how Proof of Work networks like Bitcoin create new blocks and new coins. Miners burn electricity running hashing hardware; the first to find a valid hash below the difficulty target wins the block reward plus transaction fees.
Why compute = security
Each block requires real work to produce, so rewriting history means redoing that work for every subsequent block — at enormous cost. The more total hashrate, the harder any attacker’s job becomes.
Concentration risk
Mining pools pool their power to smooth income, which can concentrate hashrate in a few hands — the exact risk the Nakamoto Coefficient quantifies. Geographic and pool distribution matter as much as total hashpower.
Related terms
Proof of Work, Hash, Bitcoin, Node, Block Reward