In order to fully understand how mining cryptocurrency works, you need to understand the process of the Blockchain. The Blockchain, also known as a digital ledger, holds a similar objective to accounting processes, however the mining process in the cryptocurrency market relies on further functions to be effective. Similar to the standard accounting process, the functionality is supposed to accurately track how much is in an account, what transactions have occurred, the order in which the transactions have been processed, and lastly place that information in a permanent ledger; the Blockchain.
In addition to these classic accounting functions, the mining process must also take the most recent and varied transactions, include them in the latest block, and apply a specified mathematical problem to that current data. To ensure each result is completely unique, this particular math equation requires additional parameters for certain digits within the answer. Although, the equation does not provide an exact answer, it displays a set length for use in the digital ledger. In order to successfully create a block, it must be accompanied by a cryptographic hash that fulfills these certain requirements, at which point when the correct hash is found, a new block is formed and the miner that found it is awarded with the units of cryptocurrency.