Topic: what is mining - explain to a newbie (Read 337 times)

All examples that should answer most of your questions...
Warning IF you do Decide to try it and like it , it is very Addicting.

The paper proposes a solution: form a peer-to-peer network. Make it public. Announce your transaction to everyone. In your announcement, point to the specific funds on the network you want to spend. Cryptographically sign your announcement with the same software key that is linked to those funds so we know they’re yours.

It almost works. We need one more thing: a way to make sure that if you broadcast two competing announcements (that is, if you try to spend the same funds twice) that only one of your attempts counts.

Bad solution: designate a party to timestamp the transactions and only include the transaction that came first. We’re back to square one. We have a trusted intermediary.

Breakthrough solution: let entities compete to be the “timestamper!” We can’t avoid the need for one, but we can avoid designating one in advance or using the same one for every batch of transactions.
“Let entities compete.” Sounds like a market economy. What’s missing? A reward for winning. An incentive. An asset.
Let’s call that asset Bitcoin. Let’s call the entities competing for the right to timestamp the latest batch of announced transactions “miners.” Let’s make sure anyone can join this contest at any time by making the code and network open.

Now we need an actual contest. The paper proposes one. On your mark, get set: find a random number generated by the network! The number is really, really hard to find. So hard that the only way to find it is to use tons of processing power and burn through electricity. It’s a computing version of what Veruca Salt made her dad and his poor factory workers do in Willy Wonka. A brute force search for a golden ticket (or in this case, a golden number).

Bitcoin Mining
Why the elaborate and expensive competition to do something as simple as timestamp transactions for the network? So that we can be sure the competitors have incurred a real financial cost. That way, if they win the race to find the random number and become the designated timestamper for a given batch of transactions, they won’t use that power for evil (like censoring transactions). Instead, they will meticulously scan each pending transaction, eliminate any attempts by users to spend the same funds twice, ensure all rules are followed, and broadcast the validated batch to the rest of the network.
Because if they do indeed follow the rules, the network is programmed to reward them…
… with newly minted Bitcoin, plus the transaction fees, denominated in Bitcoin, paid by the senders. (See why they are called miners and not timestampers, now?)
In other words, miners follow the rules because it is in their economic self-interest to do the right thing.

I find the same answer in internet sir. I know this part as I myself doing etn mining from my laptop although it is not profitable just to learn the process. my question is, why should coins allow to mine as it could effect investors as they think it is cheap to invest one time hardware investment and mine instead of buying from exchange right. so here im missing point.

mining is equivalent of digging in caves deep enough to find decent chunks of special ores or gems in crypto world we mine for decent numbers that already exist anonymously to be placed in block chain it can be different for every coin you can see more detailed explanations in wikipedia.

Mining process cannot be easily explained in the single quote. You have surf about it in Youtube because most of the miners directly shows the mining farm and rigs mining process. We will be able to find the more articles also in the internet. Please read instead of asking here.
You will only get the same reply again and again or showing critics information like why asking the query without check about it.

I'm new to cryptocurrency and dont find answers to some question yet.

i tend to compare with stock exchange and get the answers and however failed miserably to get the answers in this way.

what is a mining and how is it fair with those investors who pay 100s or 1000s of dollars to get the coins. where as a techy who have invested some thousand and keep mining different coins and fetch coins.

what is the concept behind mining technology and how is it useful in generating revenue to particular instead of continuing ico as some coins do and some coins dont let mining at all.

i'm cracking head to understand and don't get any answer.

I'm new to cryptocurrency and dont find answers to some question yet.

i tend to compare with stock exchange and get the answers and however failed miserably to get the answers in this way.

what is a mining and how is it fair with those investors who pay 100s or 1000s of dollars to get the coins. where as a techy who have invested some thousand and keep mining different coins and fetch coins.

what is the concept behind mining technology and how is it useful in generating revenue to particular instead of continuing ico as some coins do and some coins dont let mining at all.

i'm cracking head to understand and don't get any answer.