What is Proof-of-Work and why is it important?

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Highlights

  • Proof-of-Work adds the feature of trust and security to the blockchain.
  • When miners follow PoW, it offers them an incentive in the form of a reward for new blocks.
  • Proof-of-Work works to prevent and solve the "double-spending problem.

 

Proof-of-Work (PoW) is a decentralized system that verifies transaction accuracy on the blockchain network. Additionally, Proof-of-Work eliminates the need for a central authority such as the government or a bank to manage transactions and their corresponding accounts.

It requires miners (members) to put in their effort and time to solve mathematical puzzles to validate transactions. Bitcoin, Monero, and Litecoin are a few examples that use the Proof-of-Work consensus.



 


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