How do miners create new blocks in the blockchain?

1. A miner will collect new transactions (e.g., transactions moving bitcoin, ether, or other cryptocurrency between user wallets) into a newly organized block of data.

2. The miner will then use specialized software to run what is called a “Proof-of-Work” algorithm to verify the accuracy of the transactions and make sure they are legitimate. This is done by solving a cryptographic puzzle that takes a lot of computing power.

3. Once the cryptographic puzzle is solved and the legitimacy of the data is confirmed, the miner who found the correct solution will be rewarded for their efforts with a certain amount of cryptocurrency.

4. The miner then broadcasts the new block to the rest of the blockchain network.

5. All other miners in the network will also run their own proof-of-work algorithms on the new block of data to confirm the validity of the transactions.

6. Once the majority of miners in the network have validated the new block, it is added to the chain and the miner who created it receives the reward. This is how new blocks are created, and thus, how new transactions are added to the blockchain.