In simple terms cryptocurrency mining is the process of introducing new coins into the supply network. But in a more specific term it is the process by which any transaction in the blockchain network is verified and appended to the blockchain, the digital ledger for each particular cryptocurrency as a permanent record.

As more and more masses get drawn towards the benefits of cryptocurrencies, transaction also increases and the instances of the rise in mining activity is also evident.

Whenever a transaction is made, numerous miners who are essentially high end, energy intensive computing set ups or mining rigs that are run by people, competing with each other to solve a complex mathematical problem with cryptographic hash functions that is related to a particular block which contains the details of the transaction. It is the miner who is responsible for the authentication of any cryptocurrency transaction and for updating the blockchain ledger with the relevant entry of the verified transaction.

The miner who solves the problem firsts gets to add the block to the blockchain after the due verification process is completed by others in the ledger network. He is also rewarded with a pre determined quantity of the particular cryptocurrency for his efforts. This is how the more and more amount of cryptocurrencies enters the circulation for use.

Mining does generates an income for the cryptocurrency miners but one must note that the elaborate mining set up including the electricity, internet connection and computing hardware immensely impacts the revenue generated by mining.
In order to get started with the mining of cryptocurrency, miners need dedicated computer hardware that has a specialized graphical processing unit (GPU) chip or application-specific integrated circuit (ASIC).

Other essential requirements are sufficient cooling means for the hardware, a round the clock uninterupted internet connection and a legitimate cryptocurrency mining software package. The miner should have a membership in both an online cryptocurrency exchange as well as an online mining pool for the first one will allow him to release the cryptocurrencies that he has earned as rewards into the circulation in exchange of fiat or local currency.

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