How Bitcoin Mining works to Mint new coins
People are sending coins to each other over the bitcoin network every second, but someone keeps a record of all these transactions right? Yes, this happens so that we know who had paid what? The bitcoin network handles this by bundling all of the transactions made during a short period (10 minutes) into a chunk of data, called a BLOCK
These blocks (or grouped transactions) are linked such that each new block proves that older blocks were valid. Linked blocks are called BLOCK-CHAIN
The Bitcoin network was designed in a way that only 6 blocks will be solved in 60 minutes(1hr) Which means that in every 10 minute interval a new block is created for processors to HASH(verify transactions contained in the block)
The first transaction in a block is a special transaction that produces new bitcoins (25) owned by the creator of the block.
The creator of the block is the miner or the computer that bundled the transactions together, verified them and put them in the block chain (where older blocks were kept.)