The purpose of bitcoin mining is to decentralize the system. Instead of having a central authority to verify and approve transactions, it’s done via mining. Along with this - miners are also incentivised via new bitcoin and fees for transactions.
Regarding new bitcoin : around every 4 years, or 21000 blocks, the amount of new bitcoin producers halves.
Regarding fees : when you transfer bitcoin from one person to another - not the whole amount is transferred, a small % is kept for the miners.
Each block - which gets produced every 10 minutes - has all the transactions that has happened since the last block + the proof of work. The proof of work is the miners solution to the problem.
How does mining really work?
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Regarding new bitcoin : around every 4 years, or 21000 blocks, the amount of new bitcoin producers halves.
Regarding fees : when you transfer bitcoin from one person to another - not the whole amount is transferred, a small % is kept for the miners.
Each block - which gets produced every 10 minutes - has all the transactions that has happened since the last block + the proof of work. The proof of work is the miners solution to the problem.
How does mining really work?
-