Mining is something that we tend to associate with precious metals and ores. So it may come as a bit of surprise when you hear about it alongside Blockchain or more specifically Bitcoins. The concept of mining in the field of Blockchain is completely different from what we usually mean by it. Blockchain is an efficient system. But what makes it so is mining.
Mining is the solving of puzzles created by a mining computer on the network. The people who do so are known as miners and they do it because solving these puzzles brings with it a certain amount of reward in Cryptocurrency. In layman’s terms, Mining is nothing but verification of Bitcoin or data transactions.
When someone deals in Bitcoin, there needs to be kept an accurate record of that transaction. This would also be instrumental in determining whether the individual has the needed amount of currency to facilitate future transactions. That is where mining comes in.
Within a specific interval of time, there may have be a certain number of Bitcoin Transaction taken place. A specialised computer on the network takes all these transactions and hashes them. In effect, it makes a puzzles out of them.
A network may have many miners. These are people who solve these puzzles and then get rewarded. The first miner to get his/her hands on that puzzle and solve it distributes the results within the network to other miners who verify the result and then check the validity of the transaction. If the solution to the puzzle gets checked out correct then the initial miner is rewarded and the record is stored in the open ledger like system on every node.
The reward may not seem significant to just a single individual but when working in a pools, things get interesting. You get to pool all your resources like processing speed and even intellect to solve a problem and then the puzzle becomes easier to solve.
This begs the question what if a miner ort group of miners gets influenced and gives out wrong results and then verifies the same so that it could profit an entity?
So far it has been impossible since to tell if a transaction and the subsequent result by a miner is correct, at least 51% of rest of the miners need to approve it. Strange as it may seem, the digital populace still has some integrity and knows to do the right thing at the right time.