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.


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!,...

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 guide about: Consensus Algorithms in the blockchain world

26 Jun 2020 7 minute read 0 comments 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...

Peercoin: Pioneer of Proof of Stake

1 Jul 2020 1 minute read 11 comments Renan Rosa

Have you ever heard about Peercoin? We can consider Peercoin as one of those dinosaurs that exist since the most remote eras of the crypto and blockchain, as old as Bitcoin and Litecoin, we can consider it too. Besides a peer-to-peer cryptocurrency,...

Get Ready! Ethereum 2.0 is Coming!

16 Jun 2020 2 minute read 0 comments PhoenixDev

Although it has already been delayed for some time, the release of Ethereum 2.0 may be near. Although initially projected for January 2020, error and vulnerability detection and correction is taking a long time. But on June 10, the company Prismatic...

Why Monero is the best privacy coin?

19 Jun 2020 3 minute read 0 comments Cryptomeitei

Privacy is something everyone is talking about in crypto space. Being decentralised in nature privacy is one of the necessary feature in cryptocurrency inorder to secure our crypto assets from outsiders.one main thing that differenciates  privacy coi...

PoW and PoS mining.

3 Jul 2020 1 minute read 0 comments Jandmade

In the crypto world when we talk about mining we refer metaphorically to the process of extracting cryptocurrencies. There are several types of mining even though the most recurring are the so-called PoW and PoS. PoW is the acronym for Proof of Work,...

Reaching PegNet Community Consensus via PoW

20 Jan 2020 4 minute read 3 comments PegNet

One of PegNet’s selling points is decentralization — officially there is nobody in charge of PegNet. It works as long as the people using it agrees to play by the same rules, which at the moment is done by everyone using the same software: pegnetd. A...

Consensus Algorithms

24 Sep 2019 9 minute read 2 comments viraladmin

The following post is a list of consensus algorithms that was originally posted in Portuguese at https://livecoins.com.br/algoritmos-de-consenso/. I have full permission granted to repost the article. Some formatting changes have been made. I make no...

The Most Important Development You Never Knew

14 Aug 2019 5 minute read 28 comments viraladmin

Most people in the cryptocurrency industry have heard of the consensus mechanisms called Proof of Work (PoW) and Proof of Stake (PoS). Today I want to introduce you to a lesser known proofing mechanism and why this mechanism is so important. Proof of...