The process of validating other people's transactions by computer and then adding it to a long and public list called blockchain, which also includes other transactions, is called "mining" or digital currency extraction. In fact, cryptocurrency mining is a process where transactions between users are confirmed and added to the blockchain's public ledger.
The mining process is also responsible for introducing new coins into the existing stream, allowing cryptocurrencies to operate as a decentralized peer-to-peer network without the need for a central authority. People in exchanges receive "cryptocurrency rewards" by performing mining processes. It is interesting to know that anyone with a computer and access to the Internet can become a miner.
What do miners do?
Miners play an important role in the blockchain network, such as solving mathematical problems and confirming the transactions of other users over the Internet. They protect blockchains from fraud and hacker attacks and ensure the decentralization of the network.
But you should know that the mining process is not always profitable. Depending on a variety of factors – such as which cryptocurrency you're mining, or what your computer speed and electricity costs are like in your area – it may end up costing you more than the benefit of doing so.
What is an extraction pool and what is its use?
Although the block reward is awarded to the miner who finds the first valid hash value – the qualified signature – the probability of finding this hash is equal to a fraction of the total mining power in the network. As a result, miners with a small percentage of power have very little chance to discover the next block. Mining pools were created to solve this problem.
A "mining pool" means a pool of resources provided by miners - who share their processing power through a network - in which they are rewarded equally - albeit according to the amount of work they do to potentially find a block - It is shared among all the people in the pool. In a mining pool, there is a higher chance of winning a reward, although this reward must be shared among the pool members according to predetermined conditions.