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.


What is exactly PoW ?

11 Aug 2020 1 minute read 1 comment yanis

Because mining is only making proofs of work, and is well known in the crypto, I will try explaining you what it is exactly   Hash In the PoW, we solve hashes. An hash is a deterministic cryptographical function that doesn't allow to retrieve origina...

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...

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...

NEXT BIG CRYPTO | Ravencoin RVN | BTC Fork (Video)

8 Jun 2021 1 minute read 0 comments Pk24

        https://ravencoin.org/     The evolution is now. Few understand that as early adopters. After many years, conservative society follow the trends. This is a well-known pattern in life. CRYPTO IS THE NEW WAY. ΟΛΕΣ ΟΙ ΚΥΒΕΡΝΗΣΕΙΣ ΚΑΙ ΟΙ ΤΡΑΠΕ...

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...

Be Your Own Bank; Run A Masternode!

17 Apr 2020 4 minute read 1 comment binici

Are you wondering what it takes to become your own bank and how to feel empowered financially? Then this guide is for you! We’ll cover the keys to understanding what masternodes are and how to leverage them in order to keep the blockchain network eff...

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...

Data Science of Binance Smart Chain (BSC) vs Ethereum (ETH)

27 Feb 2021 4 minute read 0 comments quantdoge

Blockchain Architectures of BSC and ETH Ethereum is currently having the second-largest market capitalization after Bitcoin (BTC). As opposed to Bitcoin blockchain which serves solely as a store of value and peer-to-peer decentralized payment system,...

Energy consumption doesn’t equal high carbon footprint

3 Jun 2021 1 minute read 0 comments CryptoEnthusiast

Theres so much FUD gong around about energy consumption of PoW coins (namely BTC) and their carbon footprints and whatnot but people dont seem to be appreciating the fact they are two different things... Energy consumption = energy consumed Carbon fo...

NFTs won’t warm the planet — they’ll kickstart decentralized energy

17 Apr 2021 3 minute read 0 comments john3

There are lots of provocative headlines out there about NFT’s energy consumption, like this one from the New York Times on April 13: NFTs Are Shaking Up the Art World. They May Be Warming the Planet, Too. While it’s true that the technology behind N...