Introduction to Cryptocoin Mining

Bitcoin was introduced to the world in 2009 by Satoshi Nakamoto, a software engineer. The whole idea was to create a currency that was independent of central authority and transferable electronically. The process with which bitcoin works:

• a bitcoin transaction is made
• wait for it to be mined into a block which takes about 10 mins
• wait for more blocks to be mined on it which takes an average of 10 mins [blockchain]

The more honest blocks in the blockchain makes the bitcoin more valuable and more difficult to unwound hence the security. 

Apart from trading bitcoins, people also mine bitcoin. It is called mining because it is similar to natural resources, there is only a finite amount of bitcoins. There is only 21 million bitcoin. Bitcoin mining is the process of adding transaction records to bitcoin's public ledger or blockchain. It helps confirm transactions that have taken place to the rest of the transaction. When a block is mined, the miner gets to collect the voluntary transaction fees from the transactions. 
Since the invention of bitcoin, the level of difficulty has gone up in terms of mining. However, there are other coins that miners could choose from. As of now, Litecoin, Zcash, and Feathercoin would be easier to mine for beginners. 

Why Mining is Necessary for Cryptocurrency?
There are two parts to this but the main reason is to make it expensive for miscreants to add dishonest blocks. It requires the means of adding transactions into the ledger as well. 

Adding Transactions to the Ledger
In cryptocurrency, the timestamp of other participants can't be trusted. Also, there is no master clock or centralized agent whatsoever. Transactions added to the ledger in blocks (block order) is the only equivalent time. 
Financial Deterrent
This is all about the guessing game called "proof of work", the guessting game is not mandatory. In addition of blocks but it makes it computationally expensive which in turn makes it expensive to add blocks. This makes it expensive to act as a defense against miscreants who form dishonest blocks. 

The security of the mining network is based on its decentralization, it makes the decision making in the network consensual. All the disagreements are settled by a majority consensus. 

​How to start mining cryptocurrency?

1. Get a coin wallet
2. A free mining software made up of cgminer + stratum
3. Membership in an online mining pool
4. Membership at online currency exchange
5. Reliable full time internet connection, ideally 2 megabits/ sec or faster speed
6. Hardware set-up location in your basement or other cool + air conditioned
7. Desktop or custom-built computer designed for mining. If you use your own PC, can’t use PC while it is mining. Laptop + gaming console not effective enough to generate income
8. ATI GPU or a mining ASIC [Application Specific Integrated Chip]~$90-3000
9. A house fan to blow cool air across mining computer

Mining can be a fun and rewarding side hobby. Let us know your mining results! 
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For more info on mining, check out our slides from our last Cryptocurrency 101 Workshop! Mining vs. Cloud Mining