One-sentence definition: Mining is using a specialized machine to find a required hash.
Why it matters:
Mining is one of the ways new coins enter the circulation. Mining makes it almost impossible to create fake transactions because then the person who would want to fake a transaction would need to outperform all of the miners all over the world.
Example:
Ethereum switched from mining to staking in 2026 which is a way to putt your crypto to work on a blockchain network, so now new ETH enters circulation through validators who lock up coins rather than miners who solved puzzles.
Links (internal):
- Basics post: What is a hash and why does it matter?
- Related glossary term: Solo Mining