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.


Crypto Basics #4: What is Mining and Proof of Work?

1 May 2022 3 minute read 3 comments 2sats

*obligatory not financial advice*   Hi, In this series I want to explain some terms that are relevant to the amazing world of cryptocurrencies to help newcomers understand it better. Today I want to talk about mining.   Previous Parts: Crypto Basics...

US officials concerned about crypto's environmental impact

21 Apr 2022 2 minute read 2 comments I-HODL

Members of the US House of Representatives' Natural Resources Committee are today calling on federal environmental officials to take further action to protect against the consequences of cryptocurrency mining, citing the impact on the environment and...

You may have missed it, but Bitcoin was just 5 votes short of getting BANNED in Europe last week

28 Mar 2022 1 minute read 1 comment Kovichni

The EU parliament isn't exactly known for it's brain power or up to date knowledge regarding IT or other technical criteria, but that doesn't stop them trying to dictate 450 million people on what they can and can not do behind their PC while on the...

Proof of Work: a Beginner's guide

22 Mar 2022 4 minute read 0 comments VaKnow22

As I spend more time learning about cryptocurrency, I have increasingly found myself ignoring the terms proof-of-work and proof-of-stake. They don't mean anything to me. I tried explaining proof-of-work in my last post, but it was brief and I'm still...

How StaFi Is Rewriting History With The rDEX

21 Mar 2022 4 minute read 0 comments RitabeII

StaFi recently launched its decentralized exchange (rDEX) to improve the ease of trading the rTokens. In the past, users had to shop around for DEXs with adequate liquidity to trade issued rTokens. However, that has changed following the creation of...

Climate Friendly Cryptos are the Future of the Advanced Digital Era

17 Mar 2022 3 minute read 6 comments CryptoRealm

With the recent increase in international recognition of cryptocurrency, some people celebrated; others got more FOMO; some decided to eat more cake, and some had more questions. Questions such as "What is the impact of crypto on existing retail and...

The True Value of Bitcoin and Proof of Work

16 Mar 2022 4 minute read 0 comments hifi.bitcoin

Read now to learn how Bitcoin's energy use helps defines its value and how Bitcoin would be worthless without it. Regulation of Bitcoin and Crypto have been on the minds of governments and regulators for the past several months. After the U.S. gover...

Time & Resources are Much More Important than Money in Crypto (The Pegaxy Fallacy)

7 Mar 2022 4 minute read 10 comments Dr. Stetson Windsor, Chairperson of Jurisprudence

Folks who get rich and stay rich understand the concept of time vs. money, as in one is real and the other isn't. Or maybe better, one is real-ish and the other is, at best, a derivative. Or most simply, one deserves your mental energy and the other...

INTEL improving the future of Bitcoin

4 Mar 2022 1 minute read 3 comments avro

When Gaudí designed the Sagrada Familia, he was aware that the technology to finish his work did not exist, but as a good visionary, he trusted that at some point the construction technique would evolve, so that someone could finish it. More than a h...

Debunking The Bitcoin “Nightmare Scenario”

4 Mar 2022 4 minute read 2 comments hifi.bitcoin

Read now to learn how the Bitcoin blockchain is resistant to attacks against its mining infrastructure. The Proof-of-Work (PoW) consensus mechanism is one of many features that sets Bitcoin apart from any other settlement network that came before it...