Proof of Work (PoW)
Proof of Work (PoW) is a central part of cryptocurrency and blockchain technology. But what is Proof of Work (PoW) and why is it so important to cryptocurrency? Here’s everything you need to know about the protocol that gave us Bitcoin (BTC). What Is Proof of Work? Proof of Work (PoW) is a protocol designed to make digital transactions secure without having to rely on a third party. Essentially, PoW requires members of a community to solve challenging puzzles. This work builds on previous puzzle solutions. As a result, PoW is a way of verifying current and past transactions. Additionally, the work that goes into solving the puzzle generates rewards for whoever solves it. In the world of cryptocurrency, that’s basically what “mining” is. Proof of Work (PoW) is a foundational concept for anything having to do with blockchain. Background The concept behind Proof of Work (PoW) was originally invented by Cynthia Dwork and Moni Naor. More specifically, they explained the i