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
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