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.


ETHEREUM CLASSIC AND 51% ATTACKS

5 Sep 2020 3 minute read 0 comments Simplify Crypto

Despite being something not so common, it happened with the Ethereum Classic (ETC) twice in the same week (currently there has been another 3 attacks in a month), when a miner got 51% of mining power (hash power) to break into the network and thus cr...

What Do Bitcoin Miners Actually Do? ₿ How Bitcoin Mining Really Works?

1 Sep 2020 1 minute read 2 comments Jay Fried

In this video we are going to answer the question, What Do Bitcoin Miners actually do? We have all heard that mining computers are working to solve a complex mathematical equation, but in this video we will discuss specifically what they are doing t...

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...

What are the phases of Ethereum 2.0?

26 Aug 2020 4 minute read 2 comments Simplify Crypto

As we talked about in the last article, Ethereum, the second largest crypto, is preparing for a major change. The last step in making the largest general purpose blockchain capable of delivering on the original vision. Ethereum was created to be a “g...

Proof of Stake - the future of Ethereum

24 Aug 2020 4 minute read 0 comments Simplify Crypto

Ethereum, the second largest cryptographic company in the world, celebrated 5 years since the launch of its network on the 30th of July. You are now preparing for a very important change in the way it works. Change the consensus algorithm from Proof-...

Syscoin Has A PoW Earner Created - But You Will Never Guess Where - Bonus Freebie SYS Coins

20 Aug 2020 3 minute read 2 comments XTRM

Guess who is not going to be earning from any referral or invites on this article? Wow I am nice to you... So I should be nice to you, I am in a good mood this early morning. To boot I found a new toy on the wonderful Internet lands, that I have been...

OKEx Considering Delisting ETC Because of 51% Attacks

18 Aug 2020 1 minute read 1 comment Abhimanyu Krishnan

CoinDesk reported on August 17 that Malta-based cryptocurrency exchange OKEx is considering delisting the Ethereum Classic (ETC) cryptocurrency, after the two recent attacks had resulted in a loss of funds on the exchange. OKEx CEO Jay Hao told Coin...

KIWI Proof of Work Token

14 Aug 2020 1 minute read 0 comments afronomad.eth

KIWI is a community project and one of the first mine-able ERC20/918 tokens. No pre-mine or ICO. Thus, it has intrinsic value, fair distribution, and no corporate agenda.   KIWI is used in crypto currency payments, NFT trading, engagement rewards, a...

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...

Ethereum Classic Experienced its Second 51% Attack in a Week

6 Aug 2020 1 minute read 0 comments Abhimanyu Krishnan

Ethereum Classic (ETC) experienced its second 51% attack in roughly a week, after the Ethermine pool’s parent entity Bitfly reported that 4000 blocks had been reorganized on August 6. The amount stolen is currently unknown. This is the second attack...