What is Mining? | Cryptocurrency Glossary

Mining: Using Tools to Earn Rewards

In Bitcoin, there is a system where the person who most quickly aggregates newly executed transactions and adds them to the blockchain—while maintaining the consistency and accuracy of the transaction history—is rewarded with Bitcoin. This process is likened to the "get-rich-quick" phenomenon of the Gold Rush and is called "mining."

Since the process involves performing computational tasks using computers, with rewards paid to the first person to find the solution, the number of people engaging in mining worldwide has been increasing. Today, mining is conducted on a large scale by organizations using sophisticated systems.

Due to the intensifying competition in mining, the difficulty of mining has increased, making it difficult for anyone to easily participate. In response to this, cloud mining was created, allowing people to easily try their hand at mining cryptocurrencies, including Bitcoin, using hardware without needing specialized knowledge or technical skills.

Those who want to try mining purchase a portion of the "mining power"—the hardware provided by a cloud mining service provider. By being allocated a portion of this power
, users can receive mining rewards in the form of dividends, allowing them to become miners even without specialized knowledge.