Explain the Concept of “Mining” in a Proof-of-Work System

Mining is the process of validating and aggregating new transactions into a block, which is then added to the blockchain. Miners compete by solving a complex computational puzzle, which requires significant energy (the "work").

The first miner to find the solution broadcasts the valid block and is rewarded with new coins and transaction fees. This mechanism secures the network and creates new currency in a decentralized manner.