Mining is the process of verifying and adding transaction records to a public ledger, also known as the blockchain. It is used in cryptocurrency transactions to ensure the accuracy and security of the transactions and to prevent double spending. Mining involves verifying digital signatures, hashing transactions, and solving complex mathematical equations. The successful miner is rewarded with a certain amount of cryptocurrency for their work. This incentivizes miners to use their resources in order to protect the network, thereby ensuring its integrity and reliability.