Crypto:
29757
Bitcoin:
$67.010
% 0.08
BTC Dominance:
%54.3
% 0.12
Market Cap:
$2.43 T
% 0.29
Fear & Greed:
73 / 100
Bitcoin:
$ 67.010
BTC Dominance:
% 54.3
Market Cap:
$2.43 T

Proof of Work: Definition, How it Works ?

In simple terms, blockchain technology requires something called Proof of Work (POW). We can define, It’s like mining for treasure. Miners search for a specific kind of summary by trying different paths.

The first miner to find the right summary structure gets to create a new block in the blockchain. Because the result is random and all miners have a chance to get rewarded. But those who test more entries quickly have a better shot.

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To be allowed to create a block, the summary result must match a certain format. This format is determined by a variable called difficulty. The difficulty is adjusted so that a new block can be created every 10 minutes. As the difficulty increases, it becomes harder to find the right summary format.

Why is Proof of Work Important?

Well, let’s say someone tries to change just one block with malicious intent. They would have to change the entire sequence of summaries starting from that block. But that would mess up the desired difficulty level. Difficulty is set by a variable and it determines the format of the summary needed to create a block.

Anyone trying to change a block has to find a new summary that meets the difficulty level and redo the entire POW process. In other words, they would have to repeat all the mining and summary finding from the very beginning. With today’s technology, this is practically impossible. So POW ensures the security and integrity of the blockchain.

 


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