What is Proof Of Work? What is mining and needs of mining?
Greetings everyone! I hope you will be fine and will be enjoying good health.
As I am explaining different blockchain consensus turn by turn. So today I am here to explain another blockchain consensus which is Proof Of Work, it is the most old and first ever consensus.
What is Proof of Work (PoW)
As from the name we can see that it is a consensus in which some working is done. Basically in the proof of work the transactions are validated using the computer machines by solving the puzzles. It is a full of effort work.
Proof work is the oldest blockchain consensus and it was the first mechanism in the blockchain. As we know that Bitcoin is the first cryptocurrency which was introduced. And we know that there was need to validate the transactions of the bitcoin, so to proceed the transactions proof of work(PoW) was introduced.
Working of Proof Of Work (PoW)
As bitcoin uses the proof of work mechanism so we should understand it that how it works and how the transactions are validated.
In the proof of work there is no need for the staking, as it uses the computer power for the validation of the transactions.
The person who validates the transactions using the proof of work in the bitcoin is known as miner and this process is called mining and this mining is done by the use of the computer devices.
There are special mining machines and devices for the mining. These are the mining gigs. If your mining gigs are more powerful then you can solve the puzzles quickly and you can validate more transactions. There are different mining pools in which the miners participate and validate the transactions. This is the proof of work.
How the miners earn through Proof Of Work (PoW)?
It is the most critical thing to know that how the miners earn from the proof of work. What they get for validating the transactions.
It is obvious that they are rewarded for proceeding the transactions. So let me tell you how they earn. In each transaction there is a transaction fees, and the validators or miners pick the transaction and then validate it. And the transaction fees is given to the miners as their working as a reward.
In the mining pool there are a lot of miners and many transactions which are going on all the time. But the miners prefer to choose the transactions with the high fees so that they can earn high rewards. Because some people want that their transaction should be processed quickly so they pay more than the normal fees.
And the miners pick the transaction with the high fee to earn more and in this way the transaction is also processed quickly.
Mining Needs for Proof Of Work (PoW)
So dear fellows as I have already discussed it that it needs some computer devices. And these devices are the mining gigs. In order to perform and validate more transactions it needs that the computer should be more powerful. It should have a good graphic card, and good morning gig along with the best processor.
And then you should need of continuous electricity to remain online all the the time. Because if you are not online then you will not get any transaction.
Then the working place should be cool all the time. As it is the work of computers but it is really hard work and the computer works a lot and continuously due to which the heat is produced and the computer becomes heated. So if it will be heated it will not work properly so the temperature should be down and the environment should be cool.
There are specific places for the installation of the mining gigs. And I know that in Pakistan people install their mining gigs in the northern areas because these areas are cold. And there is no need of any air conditioner to provide coolness. And a person of my area also installed his mining node there years ago.
So this is all about the proof of work (PoW). If you have any question then you can ask I'll be reading and replying to you.