HOW BITCOIN MINING WORKS?

Bitcoin mining is a process of adding transaction records to Bitcoin ledger that each and every node can see. The ledger contains the record of the past transactions is called the block chain. Bitcoin is the way to exchange token online without depending on any centralized authority. The record-keeping system is decentralized into a blockchain that records the transaction details of all bitcoins and every connected machine in bitcoin network can see the ledger. As it is true there is no central authority. So its necessary to validate the transactions before adding into Block Chain. To control the problem of validating the transaction the process of mining is developed.

A proper algorithm is developed for this process. In every ten minutes the mining computers collect pending bitcoin transactions and convert them into a mathematical puzzle. When the first miner finds out the solution then it inform it to others on the network. Then other miners check it properly whether the sender of the funds has the right to spend the money or not and whether the solution to the puzzle is correct. If majority of them approve it, then block is cryptographically added to the ledger and the miners move on to the next set of transactions after the whole process the miner who find out the solutions gets 25 bitcoins as a reward, but condition is that the miner will get only after another 99 blocks have been added to the ledger.