Cryptocurrency mining is the process of solving a mathematical problem (for example a sum) using computer equipment.
When a computer (or a group of them) adequately solves the problem posed by the network, it is rewarded with an incentive. In the case of cryptographic money, the incentive is a series of cryptocurrency units that is being mined.
Basically, what these computer teams do is launch a series of possible solutions until the proposed solution matches the hash value of the block.
How to mine cryptocurrencies
Let's say for example that the riddle hash establishes that whoever discovers the number from 0 to 10 first, wins the prize. The miners will throw numbers until the number matches the puzzle.
During the process it will ask if the number is correct or not. Whoever reaches the correct number first wins the prize or, what is the same, takes the block reward.
The algorithms that determine the difficulty of the problem and other variables today are taken as consensus systems. This is because the agreement of some rules is needed by all the participants.
Currently, the consensus system used by Bitcoin es Proof-of-Work (PoW), although there are a large number of currencies, such as Ethereum, Lisk or Stratis that are purely Proof-of-Stake (PoS)
The PoS is based on storing coins and the work is easier, which allows not to waste work as in the PoW and is more energy efficient.
Different types of computer equipment can be used for Proof-of-Work mining. Bitcoin requires ASIC, They are specialized teams with many processors, which provide them with great power for mining.
There are other options, such as 'mine' cryptocurrencies through a browser, such as bitrad.io, sharing content and being voted for this content, as is the case of Steemit or by sharing a part of the capacity of our hard disk, as is the case with Storj.
Likewise, mining allows us to control how many coins are in circulation. When a block is certified, the miner receives a reward and thus new coins are introduced to the market. This means that there are more and more coins, up to a maximum limit, thus offering control of the network.