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What is Proof-of-Work?

By Pikai Mandal on Feb 4, 2020
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Proof-of-Work Blockchain Definition: A proof-of-work blockchain is a type of blockchain that uses a complex mathematical algorithm called a “proof-of-work” to validate and secure transactions on the network. This algorithm requires users (or “miners”) to solve a difficult mathematical problem in order to add a new block of transactions to the blockchain.

For example, let’s say Alice wants to send Bob 1 Bitcoin. She would broadcast this transaction to the network and it would be picked up by the miners. The miners would then take this transaction, along with other transactions that have been broadcasted, and package them into a “block”.

Before this block can be added to the blockchain, the miners must solve a complex mathematical problem that is designed to be difficult to solve. This problem is called the “proof-of-work” and it requires a lot of computational power to solve. Once a miner solves the problem, they broadcast the solution to the network and the other miners will check to make sure it is correct.

If the solution is correct, the block is added to the blockchain and the transactions within it are confirmed. This process is called “mining” and it is the way that new blocks are added to the blockchain. The miner who solves the proof-of-work is rewarded with a certain amount of the cryptocurrency being used on the network (in this case, Bitcoin).

Proof-of-work blockchains are considered to be very secure because they require a lot of computational power to add new blocks to the blockchain. This means that it would be very difficult for someone to manipulate the blockchain or add fake transactions because they would need to have a lot of computational power to solve the proof-of-work.

Some examples of proof-of-work blockchains include Bitcoin, Ethereum, and Litecoin.

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