Quote from: Aweasadbek on September 08, 2018, 09:11:16 AM

I cannot understand how my processor earns bitcoin, and who gives me it!?

The block chain is a method of storing data using hash functions. Think about it like this, today you collect data "A". You hash "A", and store it away. Tomorrow you collect data "B". But instead of just hashing "B", you hash "B" + hash of "A", and store that away. "B" is now chained to "A" because you included the hash "A" inside the hash of "B". In this example, we call "A" the genesis block because it was the first one, and it is not chained to any prior blocks.

As for mining, it is a proof that some "work" was done. It is rooted to the concept of currency. Ask yourself, why does gold have value? The simple answer is, somebody, or some team had to put in lots of "work" to obtain gold. The bitcoin mining process is mimicking this process.
That is why it to is also refer to as "mining". What your processor is doing is solving a math problem. The problem is a hash function, but for simpler terms, think of it as an equation. Your process plugs in a number, solves the equation, and checks if the answer is within the acceptable region. If its not, your processor picks a new number and tries again. If answer is inside the acceptable region then you get bitcoins.

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