Cryptocurrency mining is the process by which transactions are verified and added to the public ledger, known as the blockchain. Miners use powerful computers to solve complex mathematical puzzles that validate transactions and secure the network. In return for their efforts, miners are rewarded with newly created coins and transaction fees.

Mining requires specialized hardware, such as ASICs (Application-Specific Integrated Circuits) for Bitcoin and GPUs (Graphics Processing Units) for coins like Ethereum. The energy consumption of mining operations has raised concerns about its environmental impact, particularly for proof-of-work cryptocurrencies like Bitcoin.

Mining difficulty adjusts automatically to maintain a steady rate of block creation, ensuring that new coins are issued at a predictable rate. This process helps to regulate the supply of cryptocurrencies and prevent inflation.

While mining can be profitable, it requires significant initial investment in equipment and electricity costs. Additionally, the competition among miners has intensified over the years, making it harder for individual miners to earn rewards. Some miners join mining pools to combine their computing power and increase their chances of earning rewards.