Proof of Work (PoW) Definition - Glossary

Proof of Work is a consensus mechanism where miners solve complex puzzles to validate transactions and secure the blockchain.

Proof of Work is a consensus mechanism used in blockchain networks like Bitcoin. It requires miners to solve complex mathematical puzzles to validate transactions and add them to the blockchain. This process involves significant computational power and energy consumption, ensuring that the network remains secure and decentralized. By solving these puzzles, miners compete for rewards in the form of cryptocurrency. The difficulty of the puzzles adjusts over time to maintain a consistent block creation rate. Proof of Work provides security by making it costly and time-consuming for malicious actors to alter transaction history, thereby protecting the integrity of the blockchain.