Mining is the process of issuing bitcoins – the only way to obtain a cryptocurrency based on the math problems. Computers from different points of the Earth solve math problems. In the result, they create the Bitcoins. This is the short answer to the question “Bitcoin mining – how does it work?”
No single issuing center controls the issuing of cryptocurrency. The right distribution ensures high safety. The special transaction log records all Bitcoin transfers. The transfers come to the “miners” that select a single hash out of the million combinations that are suitable for all new transactions and a secret key. As a reward, the miner receives 25 bitcoins at one time.
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Many miners are fighting for the reward at the same time trying to guess the first hash. When a miner finds out the hash, the block with all transactions is closed. The miners move to the next one. The miners play the role of distributors. They support the work of the money system, carry out transactions, and keep the agreement about the unified state of the whole network.
Future miners want to get an answer to the question “How does mining bitcoin work?” We hope that you received the clear answer.