Proof of work (PoW) is a type of algorithm that rewards the first user (minerMiner can refer to either a computer that performs the cryptographic hashing function required to add transaction data to the... Read More) that succeeds in solving a complex computational problem (miningMining verifies and records cryptocurrency transactions on a digital ledger (blockchain). The approval or verification process for adding new transactions... Read More). This system can achieve distributed consensusConsensus allows a distributed system such as a blockchain to function as a decentralized peer-to-peer system without the need to... Read More or agreement amongst multiple users on the blockchain networkA blockchain network is a decentralized system that allows for peer-to-peer transactions. The main components of a blockchain network are... Read More. Miners in a proof of work system compete to solve cryptographic problems to add a blockA block is a specific type of construct in a blockchain that stores transactional information blocks typically contain transaction information... Read More to the blockchainAs a distributed ledger technology (DLT), a blockchain is a digital ledger that can create an immutable record of transactions.... Read More. A proof of work system prevents spam and cyberattacks such as DDoS by requiring computational processing time from miners.
