The concept of mining cryptocurrencies is analogous to gold mining. If we look backward, a gold miner would buy its own tools, find a valley and start digging! In return for the hard work, he hoped to be rewarded when finding gold. In blockchain, instead of workers with straw hats and pickaxes, you will find computer programmers with a smart server that solve complex math problems.
Mining is responsible for two of the most important functions in crypto:
- Verify, protect and add transactions to the blockchain.
- When you send a payment it needs to be verified and guarantees by the miners. It ensures that the funds you are sending (or receiving) are real. This process guarantees that fake counterfeit coins will not proceed.
Alluding to the bitcoins generation curve over time – inspired by precious metals like gold – the mining is what gives synchrony to maintain the consensus around. For the update of a public balance of transactions be accessible to anyone and, at the same time, remain resistant to malicious agents, who wants to add false transactions in their own portfolios aiming to have more bitcoin, mining is required. And this is because the process consists of an arbitrary dispute involving all those who, as miners, link their machines to the network.
Besides, all miners are in a competition – that is, guessing the number in a tremendous rate of attempts per second – to see who first finds the solution – the first number among the guesses that fits the mathematical formula – to a mathematical challenge that demands a lot from the computer. According to some researchers made by webitcoint at least 51 machines are required to mine 1 Bitcoin in 1 month.
The first miner to find the solution is responsible for adding it in the public book with the balance of each existing portfolio (blockchain) all transactions that have been propagated to your network node in the last 10 minutes on average. Once the addition has been made, the system will identify it as valid because it was done by the miner who effectively solved the last challenge, and all new information will be transmitted to the other nodes, making all users see the new transactions as valid in their respective balance sheets, while keeping the consensus. Through this work, the miner will receive the new bitcoins generated at that moment, thus making their entry into the network.