Blockchain Basic IV

What is Proof of Work?

Proof of Work (PoW) is one of the oldest cryptocurrency consensus mechanisms. Here, participating nodes validate transactions by solving complex mathematical equations.

The process of validating transactions in PoW is called mining. Participating nodes are known as miners.

Proof of Work requires massive computational power and energy to verify transactions. The mining capacity of a node increases with its computational power.

The transaction will get updated into the blockchain upon successful completion of mining. Miners will get block rewards for the verified transaction.

PoW is highly secured with a stringent process. It is difficult to add new blocks with Proof of Work compared to other mechanisms. Some of the top coins that work on PoW are Bitcoin, Dogecoin, Litecoin…etc

Image Source: https://www.freepik.com/