The process of creating individual blocks and adding them to a blockchain running on the proof of work consensus mechanism is called crypto mining. These blocks are added to the blockchain after solving certain complex mathematical computations. The purpose of mining a block is to verify the transactions of the crypto asset and show proof of work, which behaves as the ledger of mining transactions. In crypto mining, a node is run on a device that has extremely high processing power, known as the mining rig. The miners then receive a reward for adding a block to the network as an incentive. This reward is how new coins get added to the circulating supply. Depending on the type of crypto asset, crypto mining requires proof of systems. Mining is different from what we usually see in traditional systems of finance since the entire blockchain is decentralized.
Crypto mining requires both expensive hardware and software. It is also very energy-intensive. There are a few sets of protocols that the miners must follow, such as verifying transactions, performing complex computations, and other proof methods.