Cryptocurrency transactions are gathered, validated, and added to a digital ledger called a blockchain through a process called mining. The work done by miners is necessary for preserving the network’s integrity and is also in charge of adding new currencies to the system.

In the conventional banking system, financial institutions and governmental agencies print and distribute fiat currency, but for the majority of cryptocurrencies, the issuance of new coins is decentralized. Instead, mining, which adheres to a set of guidelines provided by the underlying protocol, is how new cryptocurrency units are produced. The so-called consensus algorithms specify how these rules will be obeyed, whereas the protocol specifies what the fundamental principles are.

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