The basics

Bitcoin mining is the process by which new bitcoins are created and transactions are verified and added to the blockchain. It’s done by powerful computers solving complex mathematical problems.

Why is mining important?

Mining secures the network, ensures that no one spends the same bitcoin twice (double-spending), and keeps the system decentralized. Miners are rewarded with new bitcoins and transaction fees for their work.

How it works

Miners group transactions into blocks. To add a block, they must find a valid hash – a number that meets certain conditions. This process is called proof of work and requires massive computing power.

What does hashrate mean?

Definition

Hashrate is the measure of how much computing power is used in the Bitcoin network. It reflects how many calculations per second all miners combined are performing to find the next block.

Why it matters

A high hashrate means the network is more secure and resistant to attacks. It also indicates strong participation from miners around the world. The higher the hashrate, the harder it is for bad actors to manipulate the blockchain.

How it’s measured

Hashrate is measured in hashes per second (H/s), with common units like terahashes (TH/s) or exahashes (EH/s). The hashrate can vary depending on network activity and miner profitability.

What is a node?

A Bitcoin node is any computer that runs the Bitcoin software and connects to the network. It helps store, verify, and distribute the blockchain — the public ledger of all Bitcoin transactions.

Full node vs. lightweight node

Most secure are full nodes: they download the entire blockchain and independently verify every transaction. Lightweight (SPV) nodes trust other nodes for some information and are more common on mobile devices.

Why nodes are essential

Nodes enforce the rules of the network. They reject invalid blocks and transactions, help keep the system decentralized, and allow users to interact with Bitcoin without relying on a third party.

Can I run my own node?

Yes. Anyone can run a Bitcoin node with standard hardware and internet access. Running a node gives you privacy, independence, and a better understanding of how Bitcoin works.

The basics

The Lightning Network is a second-layer protocol built on top of Bitcoin. It enables fast and cheap transactions by creating payment channels between users, avoiding the need to record every transaction on the main blockchain.

How it works

Two users open a payment channel by creating a Bitcoin transaction on the main chain. They can then send unlimited transactions between each other off-chain. When they’re done, the final balance is written to the blockchain.

Benefits of Lightning

Lightning transactions are nearly instant and cost just a fraction of a cent. The system reduces congestion on the Bitcoin network and makes microtransactions possible — something not feasible on-chain due to fees and speed limits.

Is Lightning secure?

Yes. Lightning relies on smart contracts and cryptographic rules that are enforced by the Bitcoin blockchain. It’s ideal for day-to-day payments, while still backed by Bitcoin’s strong security model.