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.


Where does Bitcoin (BTC) come from? A walk through history

12 Oct 2019 4 minute read 1 comment darianosch

From bitcoin to blockchain to distributed ledgers, the cryptocurrency space is evolving rapidly. So fast that we are more concerned with looking to the future than to the past. But the history of bitcoin is a very interesting one. Today's innovation...

New choice for hard disk mining-DISC

7 Jan 2020 2 minute read 0 comments Diskcoin

Because of mining, BTC has created batches of wealthy people. People who know BTC are eager to participate and profit from it. This seemingly reasonable requirement has become increasingly difficult to achieve due to the development of BTC (POW). Wha...

The benefits of Veil’s PoW mining/PoS staking hybrid consensus for security and distribution

14 May 2019 2 minute read 0 comments Strontium

As Veil users are already aware, the Veil network relies on a hybrid proof-of-work (PoW)/proof-of-stake (PoS) dual consensus setup to secure the network and distribute rewards. The PoW consensus depends on Veil’s X16RT algorithm adapted from Ravencoi...

Minima - changing the game?

27 Jan 2020 2 minute read 2 comments Adam Funnell

Very occasionally, I come across something that gives me goosebumps. Something that could really change the game. It is not often, and more often than not when a new protocol comes along, we seem to be going over old ground and very little changes. P...

Zilliqa coin: A proof of work coin for issuing tokens and creating Dapps on its network

25 Nov 2019 5 minute read 0 comments quintomudigo

              Zilliqa is a native cryptocurrency of the zilliqa network that can be transferred from one smart contract address to another without involvement of a thirdparty thus making it a decentralized utility coin. The transaction will be proce...

Bytom coin: A mineable and stakeable coin for building Dapps on its network as well as creating and issuing tokens on its network

25 Oct 2019 6 minute read 4 comments quintomudigo

  Bytom coin is a native cryptocurrency of the Bytom blockchain platform launched on the Ethereum network as an ERC20 but was later created on the Bytom blockchain network platform whose transaction takes place from one peer to another without invol...

How staking enables passive income earning in crypto

19 Nov 2019 2 minute read 0 comments Chriss

  The basic behind Proof-of-Stake and cryptocurrency staking The main purpose of Blockchain is to fulfil the role of trustworthy and decentralized digital ledger that is used to record transactions across many computers so that any involved record ca...

The risks and rewards of cryptocurrencies

16 Dec 2019 2 minute read 0 comments Chriss

Cryptocurrencies are with us for over 10 years, over that time we have seen some impressive growth in this field. Cryptocurrencies such as Bitcoin or Ethereum, or even some smaller contenders, can grow over 1,000% and more, in one year alone. These n...

Proof-of-Work vs. Proof-of-Stake (what is the difference?)

17 Jan 2020 2 minute read 1 comment TrocProcLock

So each Cryptocurrency has one of two methods to verify transactions. Proof-of-Work and Proof-of-Stake. Proof-of-Work (PoW) was brought over to the money world by Hal Finney in 2004. And when Bitcoin was introduced in 2009 it was the first widely ad...

Byzantine Fault Tolerance

26 Jan 2020 1 minute read 0 comments piotrillo

The problem of the Byzantine generals, also called problem of interactive consistency. This refers to a problem of consistency. It is about the task of making common and precise decisions in a network. The problem can best be described with a metapho...