(1) Where in the process does this information get confirmed once a hash has been determined?
The process of mining is like this:
- Miner selects a bunch of preferred transaction from its node's mempool and creates a new block with them and fills in the header variables (that includes computing the merkle root hash and setting the correct target).
- Then the miner computes the header hash
- Then the miner converts that hash to an integer and compares it with the target. If it is <= target then moves to last step, if not the miner has to change something in the header to perform previous step and this step again. First thing that is changed is the nonce, if they run out of nonces to change they have to change something else, usually an extra nonce in the coinbase transaction that would also change the merkle root hash.
- Last step is to publish the block on the network network to let other peers know that they have found a new block.
(2) When and where is the data decrypted?
There is no encryption anywhere in bitcoin protocol.