The role of Miners on blockchain networks

Miners and validators play a crucial role in maintaining the integrity and continuity of blockchain networks by selecting transactions from the mempool (memory pool) to create new blocks. The mempool is a temporary storage area where all pending transactions await confirmation.

Transaction Selection Process:

• Transaction Verification: When a transaction is broadcasted to the network, it enters the mempool. Nodes validate the transaction by checking digital signatures, ensuring the sender has sufficient funds, and confirming that it adheres to the network's protocol rules. Validated transactions remain in the mempool until they are included in a block.

• Prioritization Criteria: Miners and validators prioritize transactions based on various factors, most commonly the transaction fees. Higher fees incentivize miners/validators to include those transactions first, as their compensation primarily comes from these fees, especially in blockchains where block rewards diminish over time (e.g., Bitcoin).

• Block Creation: Miners/validators select the highest-priority transactions from the mempool to maximize their rewards. They compile these transactions into a new block, adding a cryptographic hash of the previous block to ensure continuity. This new block is then subjected to the consensus mechanism—Proof of Work (PoW) for miners or Proof of Stake (PoS) for validators.

• Broadcasting the Block: Once the new block is created and validated, it is broadcasted to the entire network. Nodes receiving the new block validate it by checking the included transactions and the block's adherence to consensus rules. If valid, the block is added to the blockchain, and the transactions within it are confirmed.

This process ensures that transactions are systematically validated, prioritized, and confirmed, maintaining the blockchain's integrity and efficiency.

Thanks

src

~ Nesaty