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.

Anyone Can Participate in Proof of Work

1 Dec 2020 2 minute read 0 comments CPix

Thought Of The Week Bitcoin continues to be the most secure and decentralized computing network in the world mainly because it uses a Proof of Work consensus mechanism. All miners exhaust great deals of energy in the form of electricity, both renewab...

Ethereum 2.0 ... it's the final countdown!

24 Nov 2020 2 minute read 24 comments PVMihalache

Play and start reading... cause it's the final countdown for Ethereum 2.0 I am an Ethereum fan and I am a believer that ETH2.0 will be the solution to the current high gas fees. ETH2.0 will also bring a mega boost in speed as will scale from the cur...

200,000 ETH, 24 Hours. Can ETH Degens Do It?

24 Nov 2020 2 minute read 3 comments AlucardLife

The Ethereum 2.0 upgrade has received quite a boost over the last few days, moving the needle from below 10% to around 20% at the writing of this piece. Analysts predicted that whales would wait until the last minute to put their 32 ether minimum in....

Proof of Transfer (PoX): a Sustainable Consensus

9 Nov 2020 5 minute read 1 comment Saurabh

In a blockchain governed system all the transactions have to be recorded on a distributed ledger, the copy of which is carried by all the participating nodes. Miners or the validating nodes authenticate the transactions and record them on the global...

US DLT eVoting in 2022? A Crypto Way Forward

7 Nov 2020 5 minute read 10 comments thunderboltkid

Distributed Ledgers, which are permissioned (ID ratified) and public hold great promise for evoting.  A properly designed, "by State" sharded, vote  summary 'roll-up' into such a distributed ledger of this type, would have the "TPS" Transactions per...

PoS- A PoS? - Staking- The Claim of Decentralized Consensus and Reward Distribution, Unrealized. The TK fix

1 Nov 2020 9 minute read 9 comments thunderboltkid

Witness EOS, Where 11 wallets control most of the wealth within that  crypto "Ecosystem' Earning rewards every Epoch. Not good. Is there a better, improved way to Stake (Proof of Stake) and earn rewards for providing Consensus services  to settle tr...

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." - - 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...