Bitcoin mining is the process by which new bitcoins are created and transactions are verified and added to the Bitcoin blockchain. It relies on a distributed network of computers solving complex mathematical puzzles to validate groups of transactions (blocks). The first miner to solve the puzzle gets to add the new block to the chain and earns a reward in bitcoins. This mechanism serves two main purposes: introducing new coins into circulation at a controlled rate and securing the network by ensuring that adding blocks requires substantial computational effort (proof of work). Key ideas in plain terms:

• Validation: Miners check and confirm a batch of transactions, ensuring they’re legitimate and not double-spent.
• Competition: Miners use powerful hardware to compete to be the first to solve the cryptographic puzzle for each block.
• Reward: The winning miner receives newly created bitcoins as a block reward, plus any transaction fees from the included transactions.
• Security and supply: The difficulty of the puzzles adjusts roughly every two weeks to keep block production around ten minutes, preserving network security and a predictable supply schedule.

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