You might not have given mining much thought if you are only purchasing or trading Bitcoin. But since Bitcoin is user-maintained, it's beneficial for anyone working with Bitcoin to have a fundamental understanding of its technological foundations.
Bitcoin, like many other blockchain systems, lacks a central controller and maintains a decentralized ledger of user balances. Bitcoin instead relies on users to keep their own copies of the transaction history ledger. Users reach an understanding about the accuracy of those shared records through a process known as mining.
The network creates enough transactions around every 10 minutes to create a new "block," which is essentially a collection of transactions that has been tamper-resistant encoded. The miner is paid when they successfully add a new block to the record.
However, mining is more complicated than just looking for fresh transactions and submitting them. Everyone would be able to accomplish it if it were. Bitcoin mining is a costly process that involves solving challenging computational puzzles in order to prevent fraud.
In an effort to be the first to obtain a value that falls inside a specific mathematical range, miners' computers run cryptographic calculations trillions of times each second. A block can be submitted after this task is successfully completed, and the miner will be paid if the network's other computers find that it matches their records.
The theory behind this is that mining shifts the economic incentives in favor of miners acting honorably. You might not want to take the chance of losing your prospective return by, say, entering false information about the Bitcoin in your account after investing the time and money to mine a block.
Anyone can participate in the Bitcoin mining process, but your chances of earning a reward are very slim unless you have access to the potent processors known as ASICs (that's "application-specific integrated circuits").
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