mining (crypto)
/MY-ning/ · noun · Development · Origin: 2009
Definitions
The process of using computational power to validate transactions and add new blocks to a proof-of-work blockchain. Miners compete to solve a cryptographic puzzle, and the winner earns newly minted tokens plus transaction fees. The difficulty adjusts automatically to maintain a target block time.
In plain English: Using computers to solve math puzzles that verify cryptocurrency transactions. The first computer to solve the puzzle gets rewarded with new coins.
Example: The company converted an old warehouse into a mining operation with 2,000 GPUs, but their electricity bill made the margins razor-thin.