Process:

  1. Running a Node: The Miner must run a full Bitcoin node. This allows them to stay updated with latest state of the blockchain
  2. Begin construction of a new block template
  3. Select Transactions: From the pool of unconfirmed transactions, miners pick those they wish to include in the new block. Usually, tx with higher fees are prioritized.
  4. Create coinbase Tx: This is the first transaction in a new block, where miners award themselves the block reward and tx fees.
  5. Constructing Merkle Trees: Transactions are organized into a Merkle tree
  6. Hashing for the Block Solution: Miner hashes the block's header, which includes the Merkle root, timestamp, the previous block's hash, and a nonce. The goal is to find a hash that meets the network's difficulty target
7.1. If success, submit the block 7.2. If another block is added to the chain by other miner, update block template to reflect this change and start the mining process anew.
Spot on, as far as I know. I hope this helps noobs and NPCs understand it better or at all.
reply