How does bitcoin mining work?

How does bitcoin mining work?

Mining is the only way to get new bitcoins, and it works very similar to the actual mining of minerals; hence the name, the people who do the mining are the miners.
Bitcoin mining is the process of obtaining the right to package Bitcoin blocks through hash rate (computation). After obtaining the right to package a block, miners will receive two types of rewards: the new currency reward for creating a new block and the transaction fee for the transactions contained in the block.
These two types of rewards are what keep miners motivated to mine. However, the most crucial significance of mining is to protect the Bitcoin system's security, achieve a consensus on the Bitcoin network without a central institution, and avoid double payments.
Bitcoin is issued through mining, similar to how the central bank issues money by printing money. However, the total amount of Bitcoin is limited, and the reward mechanism for mining new coins is decreasing. The total number of bitcoins is 21 million, and the number of bitcoins miners receive for packaging a new block is reduced by half every four years. For example, in 2009, each block was rewarded 50; in 2012, each block was rewarded 25; and in 2016, the reward was halved to 12.5. At this rate, in 2140, all bitcoins will be issued.
When creating a block of transactions, miners go through a process. They put the information in this block and then use a mathematical formula to turn it into something else, which is a much shorter, seemingly random sequence of letters and numbers called a hash. This hash is stored with the block at the end of the blockchain at the time. Miners don't just use the transactions in the block to generate a hash. Some other data is also used. One of the pieces of data is the hash of the last block stored in the blockchain.
So, this is how miners block a block. They all compete to do this, using software written specifically for the mining farms. Every time someone successfully creates a hash, they are rewarded with 25 bits, the blockchain is updated, and everyone on the network hears about it. This is the motivation to keep mining and keep transactions going.

People are always sending bitcoins to each other over the bitcoin network, but unless someone records all those transactions, no one can track who paid what. The Bitcoin network handles this by collecting all transactions made within a particular time into lists called blocks. It is the miners' job to confirm these transactions and write them to the ledger. This ledger is a long list and is called "blockchain." It can be used to explore transactions between any Bitcoin address at any point on the network. Every time a new block of transactions is created, it is added to the blockchain, creating an increasingly lengthy list of all transactions on the Bitcoin network.
The Bitcoin protocol will not accept any old hashes. It requires that the block's hash must look a certain way; it must have a certain number of zeros at the beginning. There's no way to know what the hash will look like before it's produced; as soon as you include new data, the hash will be completely different.
Miners should not interfere with transaction data in blocks but must change the data they use to create different hashes. They use another random piece of data called "nonce." This is used with transaction data to create the hash. If the hash is not in the required format, the nonce is changed, and the whole thing is hashed again. It can take a lot of effort to find a valid nonce, all miners in the network try to do this simultaneously, and this is how miners earn bitcoins.
When Bitcoin was born, a new type of work was officially born: "miners." What miners do is pack blocks, and the process of obtaining the right to pack a block is mining. We will explore the process of mining from the beginning and end of the birth of a new block.