What is mining?

Mining, specifically SHA-256 mining, is the process of adding new transactions to a blockchain, crucial for its security and maintaining a trustworthy digital ledger. Key aspects of SHA-256 mining include:

Hash Functions:

SHA-256 refers to the "Secure Hash Algorithm 256-bit," a cryptographic function used in blockchain technology. This mathematical algorithm takes a block of transactions as input, producing a unique and seemingly-random fixed-length string of characters.

Proof of Work (PoW):

Integral to cryptocurrencies like Bitcoin Cash and BTC, SHA-256 mining is a core component of the Proof of Work consensus mechanism. Miners engage in a competitive process, solving a mathematical puzzle by finding a nonce that, combined with transaction data and hashed using SHA-256, meets specific criteria.

Mining Process:

Miners employ specialized computers to perform an astronomical number of calculations per second, attempting to find the correct nonce satisfying PoW requirements. This competitive process determines who adds a new block of transactions to the blockchain.

Mining Rewards:

Successful miners, the ones solving the puzzle and adding a block, receive newly created coins and transaction fees. This incentivizes active participation in securing the network.

Network Security:

SHA-256 mining plays a crucial role in ensuring blockchain security by making it computationally expensive and time-intensive to alter transaction history. The cumulative computational power of all miners collectively fortifies the network against attacks.


Consensus is achieved when a majority of miners agree on transaction validity and add them to the blockchain. This agreement forms a distributed and shared ledger across the network, establishing trustworthiness and decentralization in blockchain technology.

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