How does mining work for digital currencies?

Mining is the process of verifying and adding transaction records to a cryptocurrency’s public ledger. This validates the transactions of the digital currency, ensuring that they are legitimate and comply with the network’s consensus rules. Miners use specialized hardware and software to solve complex mathematical problems in order to verify transactions and add them to the ledger. The miner who successfully solves the problem first is rewarded with newly created coins, or a transaction fee paid by the sender of the transaction.