What is Bitcoin Mining? Bitcoin mining is the process that officially records transactions on the blockchain. It is also the mechanism by which new bitcoins enter circulation. Miners use specialized hardware and software to solve cryptographic puzzles set by the Bitcoin network’s difficulty algorithm.
The first miner to solve the puzzle is rewarded with bitcoins, and the cycle begins again. This reward motivates miners to assist in the primary objective of mining: earning the right to add transactions to the blockchain for the network’s verification and approval.