Proof of Work (PoW) - News, Opinion & Analysis

Proof of Work (PoW)

143 Articles 50 Followers

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.

China And New York Clamp Down On Crypto Mining As New Bans And Restrictions Passed

10 Jun 2021 4 minute read 25 comments Vendata

Chinese regions Xinjiang and Qinghai have banned crypto mining while New York has passed a bill from Senate that restricts permits for PoW (Proof of Work) mining, including Bitcoin (BTC), both based on environmental grounds. China Continues To Ban Cr...

What is the 51% attack, how does it work, and how to make it harmless?

2 Oct 2021 2 minute read 15 comments MikeZillo

We hear a lot about the 51% attack, but what is it really about? The 51% attack is a hacking procedure that is perpetrated against the blockchain in order to take over the ability to validate or cancel transactions at will. Basically it consists in t...

New York Assembly Pushes Back Bill Banning PoW Mining Until Next Year

12 Jun 2021 4 minute read 2 comments Vendata

After passing the New York Senate a few days ago, bill S6486B that temporarily bans PoW crypto mining in New York amongst other things has failed to pass the State Assembly, pushed to January 2022. The Bill Bill S6486B looks at stopping PoW crypto mi...

The ZENvangelist - The journey begins!

14 Jul 2021 2 minute read 3 comments PVMihalache

Good days start with good news! My ZEN faith was rewarded with an invitation to the Horizen Ambassador Program. I added the ZENvangelist title to the list of names I want to be called by friends and family, and I was ready to embark on this new jour...

Helium in focus, will it revolutionize the telecommunication market?

23 Nov 2021 3 minute read 0 comments Austras

For several years the scene for devices wanting to reach and send their data for different purposed has been lack lustered. It's expensive and the coverage outside major cities is poor. Helium aims to fix this by building a decentralized network of h...

What is a Consensus Method?

7 Aug 2021 5 minute read 0 comments

Understanding the cryptocurrency world is no easy feat. Especially because cryptocurrency is built on a new type of technology that not many people understand known as a blockchain. Blockchains use something known as a consensus method to function....

Josiah Spackman on DigiByte and Proof-of-Work Mining's Challenges

2 Feb 2021 1 minute read 2 comments TheDesertLynx

Josiah Spackman, a.k.a. DGB_Chilling, comes on the podcast to discuss the particulars of proof-of-work mining, the various types of mining algorithms, with the drawbacks and benefits of each approach, in the context of recent 51% attacks. We go into...

CRYPTO KULTUR #007 - OFF-Grid Crypto Settlement Node Power? - TWINDPowered & More

13 Nov 2021 22 minute read 0 comments Thunderboltkid

Some of us in the crypto space looking at 'Off Grid' living wonder: Is it possible to build an inexpensive crypto settlement node operating with off grid power? Absolutely! Running a crypto PoS or lightweight PoW settlement node powered by  batteries...

How do Mining Pools Work?

11 Jan 2022 4 minute read 2 comments SimpleHold

In case, you’ve decided to mine and to become a proud miner, you need to get through some basics, just to know better the field you’re going to till.   What is a mining pool itself and how to get one?   First, a mining pool is a team of cryptocurrenc...

Double-spending Problem Explained

20 Apr 2021 2 minute read 0 comments Heath Muchena

Double spending happens when the same funds are spent on two recipients at the same time within a digital cash system. A system that cannot rectify this issue is undermined since there is no way of verifying that the funds they receive have not alrea...