Finance
How does Bitcoin mining work?
Bitcoin mining works by computers racing to solve a hard math puzzle; the winner gets to add the next block of transactions to the blockchain and earns newly created bitcoin. This 'proof of work' secures the network without any central authority.
See it in motion.
Watch a 2-minute animated lesson that shows exactly how Bitcoin mining works.
Step by step
- 1Miners compete to solve a difficult cryptographic puzzle.
- 2The winner adds the next block and earns a bitcoin reward.
- 3This 'proof of work' makes tampering enormously expensive.
- 4It uses a lot of computing power and electricity.
Frequently asked questions
- What is Bitcoin mining?
- Computers competing to validate transactions and add them to the blockchain, earning new bitcoin as a reward.
- Why does Bitcoin mining use so much energy?
- The puzzle is deliberately hard, so miners run huge amounts of computing power around the clock.
- What is proof of work?
- A system where solving a costly puzzle proves effort, securing the network against fraud.