if this will be new to you we should start with a small explanation of what mining is:
well its term itself is just pointing on the fact, that it is connected to mine for coins.
but instead of having a real mining axe and a cave to mine for minerals or other precious things
the term here is related to mining for those virtual existing coins called bitcoin. Using the
appropriate computer Hardware called ASIC as the "axe" what stands for [Application Specific Integrated Circuit] is mainly used and especially to mine bitcoins through computation
but how does it work?
in reality its a quite complex thing and needs a lot of
technical understading to fully grasp it.
but we just stay with a much simpler approach to get a better and brief understanding what can be understood by this "mining axe" and "mining" relationship
So let us introduce computational hashes next
a hash is quite simple to understand
data is being transformed in some way to be able to get processed more efficiently throughout the internet. today we call such data related things hashes. cause nearly every data today is using them to get data itself more secured and faster processed throughout the cyberspace
for mainstream on the much simplest level we know them as hashtags or hashtagging something
the principles are the same. you have the hash given to you and it points on something it relates to the hash itself is just a piece of information for heaving it easier dealing with the data behind it
for example: #bmw now i have a solid and stable value where people can thought connect everything related to BMW.a well known Producer Company for the Automotive industry. or if you want it simple a car company
this hashvalue is also connected to other hash values that are more on a computational level understood better by a computer or smartphone
you see it yourself marking it as a hashvalue through using this symbol --> # i am able to compress data and express data through it
this from there on can be better hardlinked to reach the underlying destination. in extreme the main center building in munich Germany where the company is located for its headquarter
without hashes you cannot make sure that data that is being transfered is reaching its destination in the way you want it to. you need things like checksums and other handshake measures installed on the one hand on the senders on the other on the receivers side of this process throughout data handling issues.
when using them it enables much easier to proceed data transfers that have been paused or killed by the sender or receipient once before.
you can easily compute their values and they are not that big in size either if your main data is much more to transfer in size than just checking of portions of it and if they are transfered in the right way or not. and for this. its quite handy
the same is true for how bitcoin is transfering his coin amount but also additional data through its own network. hashing them makes them easier to deal with without showing the data itself to others more than really is necessary to do.
you can get more security established if you add cryptographic algorithm behaviour for such data hashes as well
this in sum realises a fully functional circulating and crypto secured data hashes transaction network
mining now is just the fact you get new hash values becoming being processed via special working mining algorithms for them. or in simpler words: hashcracking algos by solving the underlying mathematically and highly complex equations a crypto secured hash value commonly consists of
whenever such a hash is "cracked" open a transaction amount is coming to life being a new part of the network
the process itself is called mining
and the first computational unit that is being able in getting access to such a new hash value for appropriate amount of circulation coins parts. will be rewarded appropriatly (at this given moment its 6.25 BTC for rewarding amount)
such a unit is called a "miner" having appropriate computation power set into place being able to realise exactly this
or in other words having running a lot of lot of computational ASIC hardware for realising getting a reward produced
we hence speak for new coin amounts and hash values for such coins. but they are also based on knowledge for them.
so this results in knowledge extension for the network in whole
and more knowledge gives more power for the network as a result
another effect of this self containing and extending behaviour is being a solid and stable running network
and with all this computational hardware we realising necessary world of realities where people can life in and funding themselves
a life onto it
another benefit mining gives us is getting a todays global computational supercomputer established to have our internet ongoing and being able solving real life problems better