Cryptocurrency mining can be defined as the process by which transactions on a network are validated and grouped, and then added to a ledger, known as a blockchain. This process provides security to the network while allowing the generation of new coins. Simply put, it is the activity that allows cryptocurrencies like Bitcoin to work.
This process is known by the name “mining” because, in essence, it is similar to the mining of any mineral such as gold or coal. Only, instead of taking a pick and wheelbarrow to extract value from the ground, you use computer programs and hardware to extract value from the network. When you mine cryptocurrencies, you put the processing power of your hardware at the service of a network, be it Bitcoin, Ethereum, Litecoin, Monero, etc. These cryptocurrency networks need the power of your computers to confirm that their users' transactions are valid. All valid transactions are grouped into a block that you then add to the blockchain, thus processing batches of commercial operations.