What is Bitcoin Mining?

In the traditional banking system, a bank verifies your transactions — it checks that you have enough money before approving a transfer. Bitcoin has no bank, so who verifies transactions? The answer is miners. Bitcoin miners are operators of specialized computers that compete against each other to solve a mathematical puzzle. The winner earns the right to add the next batch of transactions to the blockchain and receives newly created Bitcoin as a reward. This competitive process ensures that transactions are verified honestly without requiring any central authority.