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.


BoomPow v2.0.3 Released! Earn BANANO by Providing Proof of Work to (BA)NANO Services!

24 Apr 2020 3 minute read 8 comments banano

In September 2019, we’ve announced BoomPoW (bPow), BANANO’s peel of the distributed proof of work (DPoW) system created by members of the Nano community. Now, we’ve updated our BoomPow client to version 2.0.3 — and this is a mandatory update! Read mo...

Proof of Stake Vs Proof of Work: The quest for healthier consensus algorithm.

4 Jul 2020 8 minute read 4 comments Dzoelx

Unarguably one of the biggest events expected to happen soon on the crypto space is ethereum moving from Proof of Work to Proof of stake. I’m sure a couple of investors just saved up at least 40 ether coins waiting to put them on the stake. Poor me!,...

A Complete Guide to Leased Proof-of-Stake (LPoS)

24 Jul 2020 4 minute read 4 comments Chriss

A consensus algorithm is one of the significant pillars of blockchain technology. Proof-of-Work (PoW), developed by Satoshi Nakamoto in 2008, was the first consensus mechanism. In essence, nodes compete against each other to validate a transaction on...

What are Proof-of-Work (PoW) and Proof-of-Stake (PoS) in Cryptocurrencies?

21 May 2020 5 minute read 1 comment Chriss

The three words you will definitely come across as soon as you start learning about cryptocurrencies are Distributed Ledgers, Blockchain, and Consensus Algorithms. The good thing is that these vocally confusing words refer to concepts that will...

Proof of Authority

12 Jun 2020 3 minute read 3 comments Ruma

The Blockchain industry is continuously progressing since its inception. The consensus mechanism is the core of a decentralized ecosystem that helps it to achieve consensus in the network. Till now, many consensus methods have been invented and imple...

A response to the article: "Staking - centralization risk"

9 Mar 2020 4 minute read 1 comment Allen Walters

This is a response to the article "Staking - centralization risk". The Steem situation is a shitstorm. I'm not going to debate that much, besides the fact that I want to point out that: The fact that Justin could buy up Steemit and gain a large posi...

A guide about: Consensus Algorithms in the blockchain world

26 Jun 2020 7 minute read 1 comment LiquidAttic

This post took a little more time and more research than I am used to. I myself wanted to know how different blockchain consensus algorithms work and how they were chosen. Today I want to talk about different blockchain consensus algorithms. There ar...

Proof-of-Work Vs Proof-of-Stake - How Do they Work?

7 May 2020 4 minute read 1 comment Chriss

    Today, we are going to speak about the two of the most popular consensus mechanisms in the cryptocurrency industry, called Proof-of-Work and Proof-of-Stake. We are going to explain both of them in detail, and state the differences between the tw...

Proof of Stake - the future of Ethereum

24 Aug 2020 4 minute read 0 comments Simplify Crypto

Ethereum, the second largest cryptographic company in the world, celebrated 5 years since the launch of its network on the 30th of July. You are now preparing for a very important change in the way it works. Change the consensus algorithm from Proof-...

Ethereum Classic Experienced its Second 51% Attack in a Week

6 Aug 2020 1 minute read 0 comments Abhi K

Ethereum Classic (ETC) experienced its second 51% attack in roughly a week, after the Ethermine pool’s parent entity Bitfly reported that 4000 blocks had been reorganized on August 6. The amount stolen is currently unknown. This is the second attack...