Bitcoin Mining Basics
June 1, 2026
What is Bitcoin mining?
Bitcoin mining is the process by which new transactions are grouped into blocks, verified, and added to the Bitcoin blockchain. Miners compete to solve a computational puzzle - the first to solve it gets to add the next block and is rewarded with newly issued bitcoin plus transaction fees.
Why does mining matter?
Mining is what makes Bitcoin a decentralized system. Instead of a single company or government approving transactions, thousands of independent miners around the world compete to do that work, and the network only accepts the chain with the most accumulated proof-of-work.
What you'll learn in this series
- How proof-of-work puzzles are constructed
- What mining hardware (ASICs) actually does
- How mining pools work
- How difficulty adjusts over time to keep block times steady
This tutorial is part of the Refresh Labs Living Laboratory educational series. More sections are coming soon.