Mining is the process of confirming transactions and creating new blocks in blockchains that use proof-of-work, for which participants (miners) receive a reward.
In plain words
Miners spend computing power and electricity to find a valid block; whoever finds it receives a reward in coins plus fees. This makes rewriting history expensive and protects the network. Not all blockchains work like this: Ethereum moved away from proof-of-work, and mining there is switched off. Whether mining pays off depends on the price, the network difficulty, the equipment and electricity tariffs. Ukraine has no separate law in force on mining: the Law “On Virtual Assets” had not entered into force as of 14 October 2026.
Sources
- ethereum.org: Mining — Mining page. Checked 14.10.2026.
- Law of Ukraine “On Virtual Assets” No. 2074-IX of 17 February 2022 — Section VI (final and transitional provisions), item 1 (as of 14 October 2026 not yet in force). Checked 14.10.2026.
Example. An owner of an ASIC miner connects it to a pool: the pool combines the power of many participants and divides the reward in proportion to each one’s contribution.