Proof of Work (PoW) - News, Opinion & Analysis

Proof of Work (PoW)

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Proof of work (PoW) is the original type of consensus algorithm in a blockchain network. It was first developed in 1993 as a way to prevent denial of service attacks and others on a network. However, it wasn’t until 2009 that Satoshi Nakamoto implemented PoW on Bitcoin as an innovative way to achieve consensus in a distributed network. Since then, PoW has become a widely used consensus algorithm for many cryptocurrencies.

PoW is used to validate transactions which produces new blocks and links them together to form a blockchain. In PoW, miners compete against each other to solve complex computational puzzles. When a miner successfully solves the difficult puzzle it is verified by other miners and a new block is added to the blockchain. The transactions in the new block are thus added to the network and miners get rewarded for adding new blocks to the blockchain and securing the network.

The process of proof of work secures a blockchain network and helps to protect the network against numerous different attacks. The more miners a PoW blockchain has, the more computational hash power it has, which makes the blockchain more secure. A successful attack on a PoW blockchain would require a lot of computational power and time. Therefore, attacks on highly secure PoW blockchains can be very expensive and deemed pointless. To this day, PoW is considered to be the most secure consensus algorithm because it is the most tried and tested. 

However, PoW is not without downsides. It is very energy intensive and therefore not the most efficient consensus algorithm. Also, some experts say that PoW blockchains are more difficult to scale and that newer methods such as PoS or DPoS are required to implement various scaling solutions.

In this tag you can discover proof of work (PoW) news, cryptos, opinions and analysis created by knowledgeable individuals on the matter.


Proof-of-Work - the algorithm that makes Bitcoin move

15 Sep 2020 4 minute read 1 comment Simplify Crypto

To understand the role of miners and how consensus is achieved through a decentralized network with thousands of nodes without a central authority, we must first understand the innovative algorithm that makes all of this possible. A hash algorithm tu...

Word of the day : Consensus!

15 Sep 2020 3 minute read 0 comments HaOm

 -Consensus : "A general agreement," "the judgment arrived at by most of those concerned." - https://www.merriam-webster.com/dictionary/consensus - What is a Consensus Mechanism? : "A consensus mechanism is a fault-tolerant mechanism that is used in...

Proof of Work vs Proof of Stake – What’s the Difference

14 Sep 2020 2 minute read 0 comments GetBlock

While Ethereum currently becomes a hot topic due to its future upgrade to the PoS algorithm, it’s probably time to remember why PoS is considered a better algorithm than PoW. To summarize everything in advance: it’s even more secure and less demandin...

Blockchain - The revolutionary technology

10 Sep 2020 5 minute read 0 comments Simplify Crypto

The technology that allowed the creation of this new world is called blockchain! The blockchain - chain of blocks - quite simply, is a database stored in immutable blocks, dated and linked by cryptographic means, maintained by a distributed network o...

Consensus in a Decentralized Network

9 Sep 2020 4 minute read 0 comments Simplify Crypto

We have been learning how Bitcoin mining works and the Proof-of-Work algorithm that validates it. In this article, we will try to understand more deeply how it is possible to create a universal truth accepted by all who are part of the network and wi...

Mining - Satoshi's best idea

8 Sep 2020 4 minute read 0 comments Simplify Crypto

Bitcoin mining is the mechanism for creating new bitcoins. But it is much more than that. It is the invention that makes Bitcoin special and the decentralized security mechanism that is the basis for peer-to-peer money. New bitcoins are created each...

What is Delegated Proof of Stake?

7 Sep 2020 2 minute read 0 comments CryptoSpyder

Proof of stake is a term that is well known for most crypto enthusiasts, but it's far from widely understood. With all the questions around Etherium gas prices and transactions, it's important to understand what delegated proof of stake reall...

ETHEREUM CLASSIC AND 51% ATTACKS

5 Sep 2020 3 minute read 0 comments Simplify Crypto

Despite being something not so common, it happened with the Ethereum Classic (ETC) twice in the same week (currently there has been another 3 attacks in a month), when a miner got 51% of mining power (hash power) to break into the network and thus cr...

What Do Bitcoin Miners Actually Do? ₿ How Bitcoin Mining Really Works?

1 Sep 2020 1 minute read 2 comments Jay Fried

In this video we are going to answer the question, What Do Bitcoin Miners actually do? We have all heard that mining computers are working to solve a complex mathematical equation, but in this video we will discuss specifically what they are doing t...

VG Brief Overview — Kulupu — An amazing democratic network

26 Aug 2020 4 minute read 1 comment virtugrana

  The bitcoin network is not as decentralized as many think. If we analyze the hashrate distribution, we will notice that joining a few pools we will have more than 50% of the hashrate, approximately. Also, few are those who have the financial condi...