First of all, miners are needed because of the decentralized nature of the blockchain network, where they is no authority to oversee the network and prevent any form of network abuse. Without such a system of checks and balances, a person could, for example, create thousands of peers and forged transactions, which would disrupt the system no end.

Now, in order for you to be a miner, you would need to solve a cryptologic puzzle, which is a set of very complex mathematical questions set by Satoshi Nakamoto, the founder of Bitcoin. If you successfully solved the puzzle, as a miner you can build a block and add it to the blockchain.

The miner is also given permission to add a cryptocurrency transaction to the system which automatically grants him a specific number of bitcoins. This is the only way to create valid bitcoins. Bitcoins can only be generated if a miner can solve a cryptographic puzzle.

Of course, the subject of how to mine cryptocurrencies is more complex than I have briefly described above. It involves complex mathematical calculations that require increasingly more powerful computers. Time was when you could mine Bitcoins using your home desktop computer. However, the level of difficulty has increased exponentially as more people have invested in computer power to get involved in mining for the obvious financial rewards it offers.

More recently, we have seen the advent of so-called "proof of stake" mining, which requires less computing power, as compared with "proof of work" mining, which refers to the traditional form of mining I described above. I will not attempt to go into any more details about these different types of mining, as anyone interested in understanding the details would be better served to search YouTube for videos that would do the subject more justice that I can with my limited knowledge.

In the next CryptoEducation email, we will discuss cryptocurrencies as an investment, the different ways you can acquire them and grow their value.

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