Proof of Work
A consensus method in which participants compete to solve a computational puzzle to add the next block, making rewriting history expensive. Bitcoin uses it.
Also called PoW · mining
A consensus method in which participants compete to solve a computational puzzle to add the next block, making rewriting history expensive. Bitcoin uses it.
Why it matters
Security comes from the cost of the computation, which is why energy use is intrinsic to the design rather than incidental.
Related terms
- Proof of Stake
- Hash Rate
- Halving
Keep reading
DeFi
Financial services — lending, trading, derivatives — built from smart contracts rather than intermediaries,…
Exchange
A venue for trading assets. A centralised exchange holds customer funds and matches orders…
Bridge
A system for moving value between blockchains, typically locking an asset on one chain…
Ethereum
A blockchain designed to run programs — smart contracts — as well as move…
NFT
A token representing a unique item rather than an interchangeable unit, recorded on a…
Audit
A review of a smart contract's code by a specialist firm, looking for vulnerabilities…