Mining
In the current monetary system governments print money, which is legal tender and is used to buy goods and / or services. In the world of cryptocurrencies money is not created, but discovered. This process is known as mining.
Miners are computers that obtain cryptocurrencies as a reward every certain amount of time, once a mathematical problem is solved.
Currently you can get specialized hardware for this type of process, which is very expensive and takes time to recover the investment.
The video illustrates how Bitcoin mining works.
How does mining work?
The users of cryptocurrencies send virtual money all the time from one side of the planet to the other, but unless someone registers those operations, nobody could check a payment at a certain time. The cryptocurrency nodes leave all payments recorded in a chain of blocks, better known as the Blockchain. The work of the miners is to confirm the transactions and write them in the chain of blocks (Blockchain).
Each time a cryptocurrency shipment is made, a small commission is charged to pay the miners. Surely at this point you are wondering ... How do we make sure that the Blockchain remains intact and nobody manipulates it? This is where the miners start playing.
Minar Bitcoin
When a block of transactions is created, the miners give rise to it following a process.
They take the information from the block and apply a mathematical formula, turning it into something different.
This new "piece of information" is shorter and in appearance is a sequence of numbers and random letters technically called "hash".
This "hash" is stored with the block, at the end of it, last in the chain at that moment. Every time someone creates a hash successfully it is rewarded with the cryptocurrency that is being mined.
I hope that the explanation has been simple for you.
The important thing and that you should not forget is that cryptocurrencies are not created or destroyed, but they are discovered.