How does bitcoin mining work, and who can participate in it

Transactions are broadcast to the network: When a user wants to send bitcoins to another user, the transaction is broadcast to the bitcoin network.

Transactions are verified: Miners use powerful computers to verify the transactions, making sure that the sender has the necessary bitcoins to make the transaction and that the transaction is valid.

Transactions are combined into blocks: Once a miner has verified a transaction, they group it with other transactions that have been verified at the same time.

Blocks are added to the blockchain: Miners compete to solve a complex mathematical problem, known as a hash function, which links the new block of transactions to the previous block on the blockchain. The miner who solves the problem first gets to add the new block to the blockchain and is rewarded with newly minted bitcoins.

The blockchain is updated: Once a miner has successfully added a new block to the blockchain, the entire network of bitcoin nodes updates their copies of the blockchain to reflect the new block.

Overall, bitcoin mining is a crucial part of the bitcoin network, as it allows the network to operate decentralized and without the need for a central authority. It also provides an incentive for people to secure the network and validate transactions, as they are rewarded with new bitcoins for their work.