What is Bitcoin mining and how does it work?

Bitcoin mining is the process by which new blocks are created and added to the blockchain. It is also used to confirm transactions and secure the network. Bitcoin miners use specialized hardware and software to solve complex mathematical problems (known as hashes) to create a new block, which is then added to the existing blockchain. The miner who creates a new block is rewarded with newly created Bitcoin.

To mine Bitcoin, miners must verify pending transactions in the mempool by compiling them into a new block. This process is known as proof-of-work. Once a miner finds a solution and validates a new block, the new block is added to the chain and the miner is rewarded with a certain amount of newly created Bitcoin.