How Cryptocurrencies Mining Process Works

When we talk about cryptocurrencies mining ofcourse the idea behind it or what always comes to mind is how bitcoin the first cryptocurrencies is mined, I mean the mining process is basically a general knowledge, and ofcourse this mining simply involves using high computational power to be able to provide solutions to any puzzle on the blockchain, blocks validation and recording of and transactions on the blockchain are the basic and general idea of what cryptocurrencies mining is all about.

Now that I have provided explanation as to what this cryptocurrencies mining is I will like to briefly talk on the process involved itself.

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What Are The Process Involved

Well the process is really straightforward, in the mining process we have the stage where transactions are verified and how is this done, well when coins is sent from one user to another that's actually a transaction and when this is being done this transaction usually has to be verified before it's confirmed and completed so in this verification process all the transactions that are not verified or hasn't been confirmed is being used by the miners to form what will know as block.

Now after transactions verification in the mining process we have the stage where blocks are actually created, yes creation of blocks is the next stage involved and this is being done in the proof of work consensus mechanism (PoW) a mechanism bitcoin uses in this instance blocks are formed by miners ability to be able to decode or solve and provide solutions to complex mathematical problem, yes it's like showing evidence or proof of what they have actually done so by solving complex mathematical problems by using computational power they actually show proof of work

Now after the creation of this blocks that's after miners solve this complex mathematical problems and was able to be the first person to find not just a new but a valid hash then they have to show proof of this to others to verify the validity of this block and they do this by broadcasting it to the network and once the validity is being confirmed by other network nodes then and only then will this block be added to the existing blockchain thereby allowing all the transactions in this set of block to confirmed, so this is actually how the mining process works

What Components Are Used In This Mining

1). Mining Hardware

2). Mining Software

3). Mining Pool: This is basically a process where a group of miners come together to join forces and computational power to increase their chances of creating a new block and solving this complex mathematical problems, the believe is there is more chances of creating this block if they work together.

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Those Involved In This Mining Process.....Any Rewards For Them

Well is there any reward for this miners, those who involves in this mining process what is their gain really like is there any incentive at all.

One of the reward this miners gain is that they receive transaction fees, the money being paid as cost of carrying out transactions in the chain as well as the increased fee for prioritizing a transaction for when their is increased network activities, this fees are actually being paid to miners it's more like their reward for the work they are doing as the blockchain miners.

Also when a miner is able to solve a complex puzzle and is able to create a block which upon validation by other nodes is being added to the blockchain, this particular miner has a reward for this feat and the reward is that he will be given or will actually receive some this coins created, in the case of bitcoin for instance if a miner is able to solve a puzzle and create a block which is added to the blockchain as of current he will receive 6.25 bitcoin as reward for his effort though every 4 years as bitcoin experience halving so does the reward which also decreases accordingly.

Conclusion

Well this process is commonly know to proof of work consensus mechanism and to bitcoin which uses high computational power to make all this things workable this has led to many even banning bitcoin mining saying the high computational power used is causing huge environmental impact, well the question is, whether it's worth it, it's the risk worth the reward well for me I think it is.