Proof of Work

• It is one of many consensus mechanism; this algorithm is used to confirm transactions and produce a new block to the chain.

• Miners compete with each other by solving the PoW algorithm in order to receive the reward.

• Mining is done with dedicated computer machines which costs rocessing power (hardware, energy, and time).

• Miners are using their hardware to test these nonce, at a rate of millions per second.

• Difficult to solve but very easy to verify the correct value!

• The Proof Of Work process is known as mining and the nodes are known as miners. Miners solve complex mathematical puzzles which require a lot computational power.

• First of all, they are asymmetric, meaning it takes a lot of time to find the answer, yet it’s easy to verify if an answer is correct.

• Secondly, the only way to solve these puzzles is to ‘guess’ the answer. It is not possible to solve the puzzles quicker using any other method than trial and error.

• Lastly, the difficulty of these puzzles changes depending on how fast blocks are mined. To maintain a consistent supply of new coins, blocks have to be created within a certain time frame. If blocks are created too fast, the puzzles get harder, and if they are created too slow, the puzzles get easier.