Hello Steamians I hope you all are doing great. And enjoying steemit.
In this post, I am presenting my homework work here, which I have required by @ yohan2on, crypto professor.

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How does cryptocurrency mining work?

First, I would like to explain what is cryptocurrency mining, before we now examine how it works.

Cryptocurrency mining is the process by which transactions conducted by two persons are verified and added to the blockchain ledger. Additionally mining gives the opportunity of adding new coins to the existing circulating supply. It also enables peer to peer transactions without a need for a central authority to authorize the transaction.

In a more technical sense, cryptocurrency mining is a transactional process that involves these of computers and cryptographic processes to solve complex functions and record data to a blockchain
Reference

(1) So how does cryptocurrency mining work?
Like I said earlier, if there is no transaction, there is no need for mining. Lets assume, Mr A bought a set of cooking pot from Mr B store, and is paying with his crypto asset. Mr A initiates the payment transaction, input his privates keys and sends it to Mr B. For the transaction to be complete, it needs to undergo a verification process.

All the transactions done within that period will be bundled together and added to a new unconfirmed block of data. By doing so, it means the verification process is complete and the record cannot be altered.

Once the blocks capacity is reached, a new hash will be formed for the new block. To form the new hash, a header from the most recent block combines with a nonce . After that, the hash is added to the unconfirmed block which will be verified and confirmed by a miner .
Once the block is confirmed by the miner, it then shows that Mr A's transfer has been confirmed and will now be added to the blockchain as part of the block. Thus it be the last block to be inserted in the blockchain. Thus, mr B receives his payment.

(2) What is Mining Difficulty ?

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Mining difficulty refers to how difficult and time-consuming it takes to find the appropriate hash for a block. So this can be said to be the measurement unit used to ascertain how difficult it is to resolve a complex cryptographic puzzle. This mining difficulty increases or decreases depending on the number of miners available at any given time.
The more miners available the more the hash power increases, then the more difficult it is to find the correct hash for a block. In other words, we can say that mining difficult is a way to calculate the amount of resources required to compete for mining of a cryptocurrency.
Reference

(3) What are the challenges for crypto currency miners ?

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Solving the “nonce” (mathematical problem) required to verify cryptocurrency transactions and create new blocks requires an immense amount of computing energy.

Cryptocurrency mining requires so miuch computing power and it is a cause for concern recently. This has led to an increased energy demand. Not to be forgotten is the cry recently for a cleaner energy source. Thus this need for a cleaner energy source will put pressure on miners to seek for a clean energy source, thereby limiting grrenhouse gas emissions.

Miners consolidation and its effect on the communities they are situated.
Due to the increased energy consumption used by minere, , they seek for areas or location where energy is cheap in order to make profits from the work done. For those communities where these miners are consolidated, it becomes a source of employment to them. If by any means this business of mining ceases, it will lead to serious economic problems.

Crypto Volatility
However, if the price of the coin rewarded for mining cannot cover the energy expended in mining it, ti does not make economic sense again to mine, thus, the project will be shutdown by the miners.

The problem of cryptojacking
There are cyber thieves who are adepts at using softwares to remotely mine cryptocurrencies from other people's computers.

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