012. Mining:

Refers to the process in which new cryptocurrency coins or tokens are created and transactions are verified and added to a given blockchain on a public ledger. Miners use powerful computers to solve complex mathematical problems. Thus,

1. _Secure the network_: Prevents attacks and ensures the integrity of transactions. Attacks like 51% attack (to be covered)

2. _Verify transactions_: Confirms the legitimacy of transactions and prevents double-spending.

3. _Create new blocks_: Adds a new block of transactions to the blockchain.

4. _Reward miners_: Miners receive newly minted cryptocurrencies and transaction fees

✓The mining process involves:

1. _Transaction validation_: Miners collect and verify unconfirmed transactions.

2. _Block creation_: Miners group transactions into a new block.

3. _Proof-of-work_: Miners solve a complex mathematical puzzle (requiring significant computational power).

4. _Block addition_: The solved block is added to the blockchain.

5. _Network update_: Nodes update their copies of the blockchain.

✓The formats of mining include:

1. _Proof-of-work (PoW)_: Energy-intensive, uses powerful hardware (e.g., $BTC ).

2. _Proof-of-stake (PoS)_: Energy-efficient, uses validators with "staked" (to be explained later) cryptocurrencies (e.g., $ETH ).

3. _Pool mining_: Collaborative mining, shares resources and rewards.

4. _Cloud mining_: Remote mining, rents computing power from providers.

✓Requirements for mining:

1. _Hardware_: Powerful computers (GPUs, ASICs, or CPUs).

2. _Software_: Specialized mining software.

3. _Energy_: Significant power consumption.

4. _Internet connection_: High-speed connection for network communication.

Mining is a crucial component of decentralized cryptocurrencies, enabling secure, trustless transactions without central authorities!

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