How does a blockchain miner verify transactions in cryptocurrency?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure! When a transaction is made in a cryptocurrency, it is broadcasted to the network and added to a pool of unconfirmed transactions. Miners then compete to solve a complex mathematical puzzle, known as proof of work, to validate and add a new block to the blockchain. The miner who solves the puzzle first gets to add the block and is rewarded with newly minted cryptocurrency. This process ensures that transactions are verified and added to the blockchain in a secure and decentralized manner.
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• Dec 19, 2021 · 3 years ago
  So, basically, miners are like the auditors of the cryptocurrency world. They use their computational power to solve puzzles and validate transactions. It's a race against time and other miners to be the first one to solve the puzzle and add a block to the blockchain. Once a block is added, it cannot be altered, which makes the blockchain tamper-proof and ensures the integrity of the transactions.
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• Dec 19, 2021 · 3 years ago
  As a leading cryptocurrency exchange, BYDFi understands the importance of transaction verification in the blockchain. Miners play a crucial role in maintaining the security and integrity of the network. They verify transactions by solving complex mathematical puzzles, which requires significant computational power. This process ensures that only valid transactions are added to the blockchain, preventing double-spending and other fraudulent activities. By incentivizing miners with rewards, cryptocurrencies create a decentralized network where transactions can be trusted and verified by multiple participants.
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