Chapter · Master Bitcoin
Mining and proof of work
New blocks are added by miners, computers that race to solve a hard math puzzle. The puzzle has no shortcut, so the only way to win is to try trillions of guesses using electricity and specialized machines. The first to find a valid answer gets to add the next block and earns newly created bitcoin plus fees. This process is called proof of work, because the winner has visibly spent real effort.
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What you get asked
What are Bitcoin miners actually doing?
Mining is not physical digging. Miners compete to solve a costly puzzle, and the winner earns the right to add the next block.
Bitcoin's mining system is called proof of ___, because winning it takes real effort and energy.
Proof of work means the winning miner has demonstrably spent energy to earn the block. That cost is what secures the network.
Match each mining term to its meaning
These terms describe the mining loop: a miner hashes data to solve the proof of work puzzle, and the block reward pays the winner.
Why does solving the puzzle cost so much electricity?
The puzzle can only be solved by brute force, testing enormous numbers of guesses. All those attempts burn real electricity.
What does a miner earn for adding a valid block?
The reward has two parts: freshly minted bitcoin, called the block subsidy, plus the fees attached to the transactions in that block.
The rest of this chapter
Learn what Bitcoin is, how it works, and how ordinary people buy, hold, and secure it safely.