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.


Decred Blockchain Analysis - Part 2 PoW wow

27 Jan 2021 16 minute read 0 comments Richard Red

Getting tangled up in the Decred chain Since my first report about the Decred blockchain data, I have descended into its depths in an effort to understand what we can learn about the network. This work has progressed in three directions that have som...

Delayed Proof of Work simplified

2 Apr 2021 1 minute read 0 comments nervi

The Proof of Work consensus is probably known to everyone. It is used by Bitcoin, Ethereum or even Dogecoin. A new solution is the so-called dPoW, or Delayed Proof of Work. This is a mechanism designed by Komodo. In a nutshell, it is a modified versi...

Steem's Proof of Work - The dark side of Steem.

8 Oct 2019 3 minute read 15 comments fervi

A lot of people don't know Steem's story. They think it's a very nice platform for writing texts (which is partly true). However, they don't know the dark history of Steem, which will weigh over the platform for the rest of its existence. Not many pe...

POC - Changing Consensus with Hard disk

23 Dec 2019 5 minute read 4 comments Diskcoin

No matter how the future blockchain develops, it will never be possible to bypass the eternally unchanged level of Token. The value of Token originates from the resources consumed by mining rather than the concept of ideology. This is the current sta...

How to tell if an altcoin has the potential to grow?

15 Dec 2019 3 minute read 6 comments Chriss

  Introduction to altcoins The word “Altcoin” is used as a name for every cryptocurrency which came after Bitcoin. So altcoins are both industry-leading coins like Ethereum, Litecoin or EOS, as well as newer, smaller cryptocurrencies. As we all know...

Beginners’ Guide to Crypto: Introduction to Proof of Work

11 Sep 2019 2 minute read 2 comments Incent

Finding your way around the complex world of crypto can be harder than following a flowchart for flat-pack furniture in Finnish. In this article, we look at what proof-of-work is, and why it’s important. Proof-of-Work is one of the key features that...

Where does the money come from on the blockchain?

31 Mar 2019 4 minute read 7 comments connecteconomy

Unlike our traditional currencies, like Dollars, Euros, Yen, etc, cryptocurrencies are NOT issued by an authority like a central bank of a country. In the decentralized world of blockchain technology, money is being issued based on a set of rules and...

Why should you opt for Staking?

11 Nov 2019 3 minute read 6 comments Chriss

Good morning/evening, everyone! Today we live in a world where the Society is increasingly governed by cryptocurrencies, currently nearly 3000 different Cryptos are in use and increasingly used in our daily transactions Cryptocurrencies eliminate th...

Proof of Workout: Generating Sweatcoins through physical activity

11 Mar 2019 3 minute read 9 comments maya

I have always been a bit of a QS geek, curious to track and count various performance metrics. As I am far from being an athletic type by nature, I am well aware of the need to move and exercise a bit more than I do - and equally aware of every shre...

Types of Blockchain Consensus Protocols

3 Dec 2019 3 minute read 0 comments Chriss

  Consensus algorithms are the foundation of cryptocurrencies and blockchain in general. They allow transactions to be secured and verified without the use of a central authority. Simply put, a consensus algorithm/protocol is a procedure where all th...