Proof-of-Work [PoW] ✌🏻

Previously we learnt about Proof-of-Stake mechanism. It's time we dive into the world of Proof-of-Work and master it. Let the ball rollin 🚀

What is Proof-of-Work?

Proof of work (PoW) is a decentralized consensus mechanism that requires members of a network to expend effort solving an arbitrary mathematical puzzle to prevent anybody from gaming the system.

Proof of work is used widely in cryptocurrency mining, for validating transactions and mining new tokens.

Examples of Proof-of-Work

Proof of work requires a computer to randomly engage in hashing functions until it arrives at an output with the correct minimum amount of leading zeroes. For example, the hash for block #660000, mined on Dec. 4, 2020 is 00000000000008eddcaf078f12aac3d9f6. The block reward for that successful hash was 6.25 BTC.

Proof-of-Stake VS Proof-of-Work

PoS is a consensus mechanism that randomly assigns the node that will mine or validate block transactions according to how many coins that node holds. The more tokens held in a wallet, the more mining power is effectively granted to it. While PoS is far less resource-intensive, it has several other flaws including a greater chance of a 51% attack in smaller altcoins and incentives to hoard tokens and not use them.

That's it for the day folks, Web3Shala Signing Off ✌🏻

Have a nice day :)Keep Learning 🙏🏻