Cryptocurrency mining is the process of solving a mathematical problem (for example a sum) using computer equipment.
When a computer (or a group of these) adequately solves the problem posed by the network, it is rewarded with an incentive, in the case of crypto money the incentive is a series of cryptocurrency units that is being mined.
Basically, what these computers do is launch a series of possible solutions, until the proposed solution coincides with the hash value of the block.
Mining cryptocurrencies, the simplest explanation:
Let's say for example that the riddle hash establishes that whoever first discovers the number from 0 to 10, takes the prize. The miners will roll numbers, until the number matches the puzzle.
During the process you will be wondering 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 the rules is needed by all participants.
Currently, the consensus system used by Bitcoin, Ethereum and many other cryptocurrencies is Proof-of-Work (PoW), although there are a large number of coins, such as 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.
Ethereum with RIG mining, which are systems based on many graphics cards. Bytecoin is only processor mined.
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 therefore new coins are introduced to the market. This means that there are more and more coins, up to a maximum limit, thus offering network control.
If you want to continue learning about cryptocurrency mining, we recommend you visit the article by mine Bitcoins.