What does mining mean?

Extraction  is a term in the crypto world that refers to the activity where individuals or organizations use computing power to process and validate digital transactions within blockchain technologies.

In the world of digital currencies such as Bitcoin, mining entities (individuals or groups) enter a competition to find the fastest solution to a complex mathematical problem and then verify a block of transactions, which is then attached to the blockchain chain.

As a thank you for this effort, miners are rewarded with freshly “mined” digital currencies as well as fees associated with transactions that have been verified in the block.

The mining process is the cornerstone of most Proof of Work blockchains, as it provides security to the network and ensures its decentralized nature.

However, it is important to note that due to the growing popularity and competition in the field of digital currency mining, this process is becoming more and more demanding, leading to discussions about its effects on the ecosystem.