Mining is an integral part of a cryptocurrency network that serves two important functions. First, it is used to generate and release new cryptocurrencies, and second, it is used to verify, authenticate, and then add ongoing network transactions to the blockchain.
Depending on the network configuration, the hardware used for mining may include CPUs, graphics processing units (GPUs) and application-specific integrated circuits (ASICs). These are managed by dedicated software that serves as a bridge between the mining device and the blockchain network. Minable cryptocurrencies like Bitcoin use a Proof of Work mechanism to reach consensus on transaction validation.
