Many people hear "Bitcoin mining" and picture powerful computers solving complex puzzles to earn new coins. However, a common point of confusion lies with Bitcoin Core. So, how does Bitcoin Core mine? The most critical fact to clarify upfront is: the Bitcoin Core software itself does not mine new blocks. Its primary function is to maintain and validate the blockchain, not to compete in the computational race for block rewards.

Bitcoin Core is the reference implementation and full node software for the Bitcoin network. When you run Bitcoin Core, you download the entire blockchain history and enforce all the consensus rules of the network. Your node independently verifies all transactions and blocks it receives, ensuring no one is cheating the system. This is the backbone of Bitcoin's decentralized security. However, the process of creating new blocks—mining—is handled by specialized mining software and hardware that work in conjunction with nodes.

For actual mining to occur, a user needs several key components beyond Bitcoin Core. First, specialized hardware is required, such as ASIC (Application-Specific Integrated Circuit) miners, which are incredibly efficient at performing the SHA-256 hashing computations necessary for mining. Second, mining software is needed. This software connects the hardware to the Bitcoin network, often via a mining pool, and manages the hashing process. Popular mining software includes CGMiner, BFGMiner, and others.

Here is the typical workflow connecting a mining operation to a Bitcoin Core node. A mining setup, whether a solo miner or part of a pool, will connect to a Bitcoin Core node. This node provides the miner with the latest block data and a list of unconfirmed transactions (the mempool). The mining software then assembles a candidate block. The miner's hardware iterates through trillions of hashes per second, changing a random value called a "nonce" in the block header, aiming to find a hash that meets the current network difficulty target. This is the energy-intensive "proof-of-work."

If a miner successfully finds a valid hash, they broadcast the new block to the network. This is where Bitcoin Core's role is again essential. Every Bitcoin Core node on the network, including those not involved in mining, receives this new block. Each node independently verifies the block's validity: checking the proof-of-work, ensuring all transactions inside are legitimate, and confirming it follows all protocol rules. Only after this verification do nodes add the block to their local copy of the blockchain, and the miner receives the block reward.

Therefore, while Bitcoin Core is not a mining application, it is the critical authority that sets the standard for what constitutes a valid block. Miners must construct blocks that a Bitcoin Core node will accept. This separation of concerns is fundamental to Bitcoin's design: miners compete to create blocks, and the decentralized network of nodes (primarily running Bitcoin Core) acts as the impartial judge, securing the network against invalid transactions and blocks.

In summary, asking "how does Bitcoin Core mine?" is a bit of a misnomer. Think of Bitcoin Core as the judge and rulebook at a sporting event, while the miners are the athletes competing. The athletes (miners) follow the rules set by the judge (Bitcoin Core) to compete for a prize. You cannot mine Bitcoin directly with the Bitcoin Core GUI software. To mine, you need dedicated hardware, mining software, and a connection to the network—often facilitated by a reliable Bitcoin Core node you or your pool operate. Understanding this distinction is key to grasping Bitcoin's decentralized and secure architecture.