How does proof of work work in the world of digital currencies?

1 answers

• Benjamin JosephNov 16, 2021 · 4 years ago
  Proof of work is a fundamental concept in the world of digital currencies. It serves as a mechanism to achieve consensus and secure the blockchain. Miners, who are essentially participants in the network, compete to solve complex mathematical puzzles. This process requires a significant amount of computational power and energy. The first miner to solve the puzzle is rewarded with newly minted coins and gets to add a new block to the blockchain. This decentralized approach ensures that no single entity can control the network and that transactions are verified by multiple participants. While proof of work has its drawbacks, such as high energy consumption, it has proven to be an effective method for maintaining the security and integrity of digital currencies.
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