The most common mistake is that people truly do not know what mining truly is. The true objective of the mining process is to multi-task performing three jobs.
The three job functions a miner does are solving Highly sophisticated mathematical computations to open the lock to solve a block. The second major job function that the mining process does is to verify all those transactions that are on the block chain after the combination lock was opened.
Finally, all that data being sent across the network is providing hash power. This same hash power is providing the security that is needed to protect the entire infrastructure of the network.
Let us look at each individual task one at a time
SOLVING A BLOCK
Do you remember watching Lawn mower man? Do you remember when he was in cyber- space attempting to escape.? Lawn mower Man was attempting to solve the combination to the access point in order to escape.
This is really the secondary job of the miner, but it is working on the highly sophisticated mathematical computations in order to solve the equation, which opens up a virtual safe that allows access to the block of transactions. This I known as solving a block.
VERIFYING BLOCK-CHAIN TRANSACTIONS
This is the primary job of the miner. Once the combination is solved the block releases the transactions that are coming onto the block-Chain. Each Transaction is then verified by the miner. This is how shares are earned and newly minted Bitcoins are created and paid to the miner for their work.
Of course the shares are only paid to the miners that are mining on a pool. When you are solo mining, you are still verifying those transactions by default, however you do not earn any shares. You only get paid when your miner opens up the lock to release the transactions. In other words, when you solve a block yourself.
PROVIDING SECURITY TO THE NETWORK
Finally the miner is providing network security to ensure the stability of the block chain. All that data being sent over the network is creating what we call Hash-power. That Hash-power provides a constant security lock which protects and secures the network. This same process is used on all coins that are mined on their perspective block chain.
I hope for all you that are reading this, you walk away with a little more insight on what the mining process truly is, and how important it is to secure cryptocurrency the money of the future.
