Cryptocurrency mining is the process of verifying transactions and adding them to the blockchain. The process involves the following steps:
- Nodes verify transactions are legitimate.
- Separate transactions are added to a list of other transactions to form a block.
- A hash and other types of data are added to the unconfirmed block.
- Miners verify the block’s hash to ensure the block is legitimate.
- Once the block is confirmed, the block gets published in the blockchain.
There are different methods of mining cryptocurrencies:
- Cloud mining
- CPU mining
- GPU mining
- ASIC mining