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 your or better said mining 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 that are originally based on bitcoin core. Using the
appropriate computer Hardware called ASIC as the "axe" what stands for [Application Specific Integrated Circuit] is mainly used and especially to mine the bitcoins and partials 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.
if you are more interested into this, this is a good starting point from the programmers point of perspective
but for this explanation here on this page 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 and we all using this on nearly daily basis for mostly inside the vast amount of different type of social networks through we interact out there.
the principles are the same. you have the hash given to you and it points on something it relates to, cause 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 directly
bitcoin hashvalues that are meant be computed by a machine therefore looks like the following: fb4cf84458044a302f89b8a07ce9cdb9561c563fc8d3a1ff31f29805057e7299 its basically what our easy for humans read example would look for a more machine level as its a hexadecimal value with 64 hexadecimal ciphers being used
you see it yourself now cause marking it as a hashvalue through using this symbol --> # i am able to compress data and express data through it more easily
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 headquarters
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 to ensure this. on the one hand on the senders and on the other hand on the receivers side.
when using them it enables much easier to proceed data transfers that have been paused or killed by the sender or receipient once before in the past. what is quite normal to be occur on the internet today. to give an example: let's assume you clicked/touched on a button to download a specific file on your smartphone but your battery goes empty you recharge and try it again and if the device still holds the part you downloaded already it can proceed your download from there ongoing. this only works thanks to such before measures people installed in the past for our interactions on the net the hashes.
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 on the machine. or in simpler words: hashdecrypting or "cracking" algos by solving the underlying mathematically and highly complex equations. basically the rotations undoing for the hashing itself. they are like guessing a solution towards a problem for us humans. there is a saying: "if you wanna get something solved just turn it around till it shows you its solution right in the eye" its the same with hash decrypting processes. the mining hardware does the trick for us. Internet magic as its finest so to say. just try to imagine lots of magic cubes unsolved and the hardware is solving them for us. result:
whenever such a hash is "cracked" open and hence processed, a transaction amount is coming to life being a new part of the networks history stored in .DAT files called Blockchain or chain of blocks
what then results in the public viewable ledger for the network
this is the banking part and making sure history is being saved part
the process itself for this decrypting is then called mining
its abit like cracking open a fortune cookie. where also until you do this noone knows whats inside of it. and on the plate they basically all looking more or less the same. the force for doing the "crack" is the mining power in that sense.
Now the first computational unit that is being able in getting access to such a new hash value containment called a transaction block for appropriate amount of circulation coins parts. will be rewarded appropriatly (at this given moment its 6.25 BTC for rewarding amount).
to get a better feeling here. such a transaction block is sumed up commonly in approx. 3000 single transactions. they are gathered and bundled into such blocks. what makes it easier for the transfer.
Such a unit that does this is called a "miner" or mining node and having appropriate computation power set into place being able to realise exactly this "mining" is the cracking effect and also public storing.
or in other words having running a lot of lot of computational ASIC hardware for realising getting a reward produced. by doing this complex guess work with adding more transaction data to its global ledger history of transactions.
we hence speak for new coin amounts and hash values for such coins. but they are also based on knowledge for them. and the knowledge is worth coins itself as well.
so this results in knowledge extension for the network in whole and this is stored in the chain of blocks on the harddrive
more knowledge gives more power for the network as a result. more power equals more money hence its change in costprice and cap. to a potential user
another effect of this self containing and extending behaviour is being a solid and stable running, also self improving network. thanks to the fact it is based on its own specific protocol behaviour
and with all this computational hardware we realising necessary world of realities where people can life in and funding themselves
an own life onto it. also without even knowing such things work in the backgrounds to enable this to them. genius isn't 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. its already changing the world in such a new direction on daily basis. so there is a lot of transformative power in action here. and new tech means new how the world outside is starting to look new stuff being build, new cultures etc...
you are herby upgraded into the mining knowledge ;) at least for the basic necessary understanding of it
last but not least --> a few quotes towards mining from the original creator itself
and now let's get back to work: *mining*...*solvinghash*...*hack*...*mining*...*foundnewblock*... *addingtohistory*