In a Proof-of-work system, network participants have to solve so-called complex cryptographic puzzles to be allowed to add new blocks to the blockchain. This puzzle-solving process is commonly referred to as mining. These cryptographic puzzles are made up of all current data stored on the blockchain, as well as a new set of transactions that will be put to the next block.

The Proof-of-work process necessitates a significant number of computer resources, which use a substantial quantity of power, since the difficulty of each puzzle increases higher with time, leading to a much more difficult calculation. When a network member also known as a node solves a cryptographic puzzle, it verifies that he has finished the task and is paid with cryptocurrencies which act as a motivator to maintain the network.