What is Proof of Work(PoW)

 

Definition Proof of Work

Proof of work or PoW is a system that has the main objective of preventing cyber attacks. For example, such as sending malicious e-mail, spam, or such as a distributed denial of service (DDoS) attack, a cyber attack can consume a computer’s system resources by simply sending a few fake requests.

This PoW concept existed before Bitcoin existed. The idea of ​​PoW was previously published by Cynthia Dwork and Moni Naor in 1993. However, the term “proof of work” itself was created by Markus Jakobsson of Ari Juels in a document published in 1999.

This concept was later adapted by Hal Finney in 2004 to secure digital money. Through the idea of ​​“Reusable proof of work”, it uses the SHA-256 hashing algorithm.

Explanation Proof of Work

This explanation will focus on proof of work because of its function in the bitcoin network. Bitcoin is a digital currency supported by a kind of distributed ledger known as “blockchain”.

This ledger contains records of all bitcoin transactions, arranged in sequential “blocks”. So that no user is allowed to spend their ownership twice.

Therefore, in order to prevent interference with the blockchain that is public in nature, the different versions will be rejected immediately by other users. For example, a user transaction is logged in a block and identified as a hash. A long string of numbers that has a function in the hash is known as a proof of work.

Proof of work itself is not only used on the Bitcoin blockchain, but also Ethereum and many other blockchain networks. Some of the functions and uses of proof of work vary depending on their purpose and purpose.

Mining on a blockchain using proof of work consensus is difficult. Changing just one aspect of the blockchain can require miners to re-mine all other blocks. The advantage is that proof of work will minimize the opportunity for users to monopolize network computing power.

Proof of Work and Mining

The mining process has two main functions, namely:

  1. To verify the validity of a transaction or avoid something called double spending.
  2. To create new crypto assets by rewarding miners who successfully mine.

When you want to manage transactions, this is what happens behind the scenes:

  • Transactions are combined into something called a block
  • The miner verifies that the transactions within each block are valid
  • To do so, miners have to solve math puzzles known as proof-of-work problems
  • Rewards are awarded to the first miner to solve a problem on each block
  • Verified transactions will be stored on the public blockchain

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