What the Term “Mining” Means?
Mining, in the Ethereum blockchain, is a term which is applied to the processing activity of powerful computers, all of them interconnected on the blockchain ecosystem, working to solve a cryptographic puzzle.
That kind of “puzzle” is a combination of mathematical equations and the computer or pool of computers (miner” or “mining pool,” respectively) which solves the equations correctly in the fastest way, processes the latest blocks that are of the blockchain.
This cryptographic puzzle, which is called a “hash,” verifies the integrity of the blockchain as a whole.
With it, all the transactions on the blockchain are agreed upon in their current state, and the miner is rewarded with Ether, which is the native cryptocurrency of Ethereum cryptocurrency.
In this way, the blockchain grows and remains healthy.
Mining also offers an incentive to miners, to help power the Ethereum network, as well as keep it secure.
When a miner is awarded Ether, it helps to incentivize good code, since producing wasteful code is costly to miners.
The process of mining permits the blockchain to continue to run evenly.
Another use of mining is to secure the network from foul play.
While miners are racing to solve these puzzles, they are also verifying any work which is performed on the blockchain.
This is done so that any retractions or double – spending will be prevented.
Double – spending is similar to someone trying to use the same exact cashier’s check at two different locations, to pay for something.