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Discussion on: What exactly bitcoin miner does ?

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Damien Cosset

Miners in a blockchain compete to verify blocks. In the Bitcoin world, a block contains transactions ( from several hundreds to several thousands ). Miners compete to solve a complex mathematical problem based on a cryptographic hash algorithm. This solution to the problem is called the Proof-Of-Work. That proof is then added to the block's identity.

Miners validate new transactions and record them on the global ledger ( blockchain ). Mining is the invention that makes a decentralized security system.

In Bitcoin, miners who solve the mathematical are rewarded with bitcoins, either new bitcoins or taken from the transactions fees.

Hope it helps!

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Kamal Mustafa

Hi Damien. Thanks for chipping in, but that Type 1 explanation ;)