In a nutshell, mining solves the problem of achieving a globally agreed ordering of transactions and selection of one of several incompatible transactions.
Here's the problem that needs a solution:
If I have 10 Bitcoin and I simultaneously introduce to two distant parts of the network a transaction that gives 10 Bitcoin to Alice and a transaction that gives ...
Easiest way to understand the response of other nodes IMO is using Wireshark and follow the below steps:
Capture packets according to the network you will be using on this system when Bitcoin full node connects with the network.
Launch Bitcoin Core
Stop capturing packets once the node is connected to few peers
Filter captured data in ...
Since the accepted answer on this question is from 2013, I think this question is ripe for an up-to-date answer :)
DarcyThomas's answer still applies, if one would assume that the island nation is completely cut off from the Bitcoin network: mining would come to a standstill since the island nation's hashrate would likely not be able to find any blocks at ...