Bitcoin Mining is the process through which new blocks are added to the Bitcoin block chain. Hardware, generally called "miners", attempt to solve proof-of-work hash functions. When a solution is found (which is mathematically scheduled to take on average 10 minutes), it is broadcast to the Bitcoin network.
Incentive edit
The Bitcoin network incentivizes Bitcoin mining by offering rewards for adding blocks. Initially, the reward was 50 bitcoins plus transaction fees, but every 250,000 blocks the reward halves. The reward as of January 1, 2015, is 25 bitcoins.