Summing up,mining is the process of gathering blockchain data and hashing it along with a nonce until you find a particular hash. If you find a hash that satisfies the conditions set out by the protocol,you get the right to broadcast the new block to the network. At this point,the other participants of the network update their blockchains to include the new block....
When you create a transaction,you sign it. Anyone on the network can compare your signature with your public key,and check whether they match. They’ll also check if you can actually spend your funds and that the sum of your inputs is higher than the sum of your outputs(i.e.,that you’re not spending more than you have)....
In Proof of Work,you must provide data whose hash matches certain conditions. But you don’t know how to get there. Your only option is to pass your data through a hash function and to check if it matches the conditions. If it doesn’t,you’ll have to change your data slightly to get a different hash. Changing even one character in your data will result in a totally different result,so there’s no way of predicting what an output might be....
“ So far,so good. But what if you try to cheat? What’s to stop you from putting a bunch of fraudulent transactions into the block and producing a valid hash. ”
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