What is crypto mining?

Where and how are cryptocurrencies mined if a regular currency is minted at a factory?

Crypto mining is the process by which networks of specialised computers generate and release new cryptocurrencies and verify transactions on the blockchain.

In this process, they also verify transactions on the blockchain.

These computers are superior, high-energy-consuming machines.

The many computers required for mining work use decentralised networks from across the globe to verify the open ledger (the blockchain) transactions.

Miners compete to prove their computational work in exchange for a block reward.

In this process, computers apply immense processing power.

In exchange for the energy put in by the computers, they (the computers, and thus the miners) get a cryptocurrency.

It is a win-win situation for all parties in this ecosystem: the miners maintain the security and, thus, the blockchain's proof of work (PoW).

In return, the miners receive crypto coins as rewards. In this way, this cycle of mining and transacting continues.