The true meaning of mining is to decode or solve the equation that the author has written to obtain the code or code of Bitcoin or other digital money. Just think about rendering a raw file to get the work file that you want to use.
If you’re not familiar with the term ‘Bitcoin Mining’, you would definitely have heard of gold mining, and the process is similar. Imagine digging and mining gold for use and sale. Gold is valuable because it is a valuable and scarce natural resource that is finite in its supply. Similarly, there is a limit to the amount of Bitcoin that can be earned – in fact, it was created to be limited to 21 million units. What’s even more interesting is how the entire network is designed to be more challenging to solve as the amount of Bitcoin earned increase, which truly makes Bitcoin a valuable asset.
Decoding the Bitcoin network’s equations requires computers with high computational capacities – the process of mining coins makes use of different algorithms, which is referred to as a ‘solution’ for those mining the coin. There exists several different algorithm types, which miners choose to use in different cases and tools.