Proof of Work

What is proof of work in blockchainA blockchain—the technology underlying bitcoin and other c... More technology?

Proof of work is a consensus model in blockchain technology that requires miners to solve computationally difficult math problems in order to add new blocks onto the blockchain. These functions produce data that is used to validate that a substantial amount of work has been carried out, thus the name “proof of work.” Although solving these equations will typically result in the winning miner claiming a block rewardWhat is a Block Reward? A block reward is the reward a miner... More by adding it as a first transaction on the blockBlocks hold batches of valid transactions that are hashed an... More, proving these functions are often time-consuming and computationally expensive. Sometimes this cost of mining can even outweigh the price of the reward.

The main proof-of-work based cryptocurrencies include BitcoinBitcoin is a digital currency (also called crypto-currency) ... More, Ethereum, and Litecoin. Alternatively, some blockchains, such as Ethereum, have proposed moving towards a proof of stakeWhat is proof of stake in blockchain technology? The proof o... More consensus model in order to solve energy waste and scalability issues.