# Proof-of-Work and Mining

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The process of **mining** is central to Bitcoin's operation, and it is governed by a system known as **Proof-of-Work (PoW)**. This mechanism creates a competitive environment where nodes, or miners, work to solve complex computational puzzles. The first miner to solve the puzzle earns the right to add the next block to the blockchain and is rewarded with a block subsidy and transaction fees.

An important philosophical underpinning of Bitcoin, and therefore the BSV Blockchain (BSV) is that **decision-making power is determined by** **CPU power** rather than the number of nodes or IP addresses. This means that **nodes with greater computational resources have a competitive advantage**, which incentivizes investment in infrastructure and hardware. As a result, the network becomes more resilient against attacks, as **malicious actors would need to control a significant amount of CPU power to disrupt the system.**


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