What is Proof of Work? Crypto 101

Proof of Work

A proof of work is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof is generated.

Proof of work is used in protocols like Bitcoin as a means to keep integrity on the blockchain. No one could fake transactions as well as provide a correct proof of work without holding over 51% of the computing power on the network.

• Image Source: Blockgeeks.com

PoW isn't used in all cryptocurrencies. Other cryptocurrencies have other proofs - one of the other most popular is Proof of Stake which I will go over on a future post.

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