OKX Blockchain 60 Lectures | Episode 5: What Does Mining Mean?

"OKX Blockchain 60 Lectures" is a blockchain educational animated video series co-produced by OKX & Sina Tech. Designed for users with zero knowledge of blockchain, it uses series articles, educational animations, and other formats to explain blockchain concepts vividly from the perspectives of concepts, technology, and applications. Through 5 major sections and 60 knowledge points, it provides accessible blockchain education. The content of this episode was completed with guidance from Teacher Jiang Zhuoer, founder of BTC.TOP.

When it comes to blockchain technology, most people recognize the forward-looking nature of this technology. Not only domestic internet giants like Alibaba, Tencent, and Baidu, but also financial banks like ICBC and China Merchants Bank are already attempting to apply blockchain technology to their business scenarios. But when it comes to cryptocurrency, it becomes very controversial, especially regarding one question: cryptocurrency mining consumes so many resources, what's the actual meaning?

This actually represents the debate between blockchain with and without tokens. Currently, domestic China tends toward blockchain technology without tokens, while abroad, more emphasis is placed on blockchain applications with tokens. So today, Xiao K Jun will explain to everyone what mining means in blockchain, and what significance this behavior actually has.

Simply put, so-called mining in blockchain is different from the mining we talk about in daily life. It refers to the nickname for the method of obtaining cryptocurrency in the blockchain network. Because the quantity of coins is limited, and this behavior is similar to gold prospecting, we call the method of obtaining Bitcoin through these rules mining, and those who participate in data processing are called miners.

The significance of mining has two points. First, mining actually determines the bookkeeping rights of data. Blockchain is actually a decentralized database that everyone can participate in data processing. Since everyone can participate in data processing, there will be many participants, so whose processed data gets used becomes a question. Hence the mining mechanism: whoever can process data fastest and best, and get system recognition, obtains the bookkeeping rights for that data.

Second, it's actually an incentive system that helps maintain the entire blockchain's decentralized ecosystem. We all know that blockchain's greatest role is decentralization, thereby ensuring data transparency. Since it's decentralized, there's no dedicated team for data maintenance; it's completely handed over to the community or miners to handle. This creates another problem: why would everyone maintain data without reason?

In the blockchain network, whoever obtains data bookkeeping rights can receive certain cryptocurrency as a reward, and cryptocurrency represents the value of this system. Thus, the more participants, the higher the system's value, the higher the cryptocurrency price, which in turn attracts more participants, making the entire system more decentralized and more secure, forming a positive feedback loop. This is the essence of blockchain with tokens, and mining is an indispensable link in this ecosystem.

Blockchain without tokens removes the mining step and instead relies on centralized or multi-centralized institutions to maintain blockchain data. Although this improves efficiency and saves resources, it sacrifices the essence of blockchain: decentralization.

Blockchain is hailed as a trend precisely because its decentralized nature changes the transparency of internet data. If applying blockchain technology achieves an alternative form of data monopoly, blockchain loses its original meaning. Moreover, with technological progress, the resources consumed by blockchain mining are continuously decreasing.

So mining is not meaningless. On the contrary, mining is an important part of blockchain, both helping maintain network operation and guarding network security. As long as you want to try, everyone can experience the feeling of having a "mine" at home.

Thanks to Teacher Jiang Zhuoer for his help and guidance with this episode's content.

Disclaimer

This article may contain product-related content not applicable to your region. This article is intended only to provide general information and assumes no responsibility for any factual errors or omissions contained herein. This article represents only the author's personal views and does not represent the views of OKX. This article is not intended to provide any of the following advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell or hold digital assets; or (iii) financial, accounting, legal or tax advice. Holding digital assets (including stablecoins) involves high risk, may fluctuate significantly, and may even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For questions regarding your specific situation, please consult your legal/tax/investment professional. The information appearing in this article (including market data and statistics, if any) is for general reference only. Although we have taken all reasonable precautions in preparing these data and charts, we assume no responsibility for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in full, or excerpts of 100 words or less from this article may be used, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: "© 2025 OKX, used with permission." Permitted excerpts must cite the article name and include attribution, such as "Article Name, [Author Name (if applicable)], © 2025 OKX". Some content may be generated or assisted by artificial intelligence (AI) tools. Derivative works or other uses of this article are not permitted.

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