Mining

Definition

Mining is the process of constructing candidate blocks and competing to satisfy a proof-of-work requirement. In Bitcoin, miners select transactions, create a coinbase transaction, assemble a block header, and repeatedly vary candidate data while searching for a hash below the required target. A successful candidate must still satisfy every other consensus rule before full nodes accept it. Mining helps order transactions and makes replacing accepted history costly, while permitted rewards create incentives for participation. It is not the same as running an ordinary full node, staking a token, or solving useful scientific calculations. Individual results are probabilistic, and operating costs can continue even when no block is found. Equipment efficiency, electricity costs, network competition, pool arrangements, and fees all affect a miner's economics. Increasing the number of mining machines does not directly increase Bitcoin's permitted transaction volume or alter its issuance schedule.