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Simply put, "Mining" is a colloquial term for the discovery of new bitcoins—just like finding gold. It is simply the verification of bitcoin transactions. The process occurs whereby groups of transactions (blocks) are found, verified and added to other blocks to form a chain. Through mining, cryptocurrency transactions are settled and added to the decentralized ledger. There are two primary protocols for cryptocurrency mining, proof-of-work (PoW) and proof-of-stake (PoS). Proof-of-work mining uses computing and processing power to validate a block. In PoS mining, the blockchain keeps a record of “validators,” defined as anyone who holds a stake in the blockchain’s currency (e.g., Bitcoins for the Bitcoin blockchain) by randomly selecting a validator and giving them the right to mine a specific block. Miners are rewarded for seniority and ownership than raw processing power, therefore the ability to mine is related to the number of coins at stake. For example, a miner with 2% of Bitcoin’s supply can only mine 2% of the supply. 

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