Proof of Work

Proof of work is a blockchain consensus mechanism in which heavy computing power is used to verify bitcoin transactions and add them to the blockchain.

Proof of work (PoW) is a decentralized consensus mechanism that requires network members to expend effort in solving an encryption puzzle. It is also called mining, in reference to receiving a reward for work done.

Proof of work at scale requires vast amounts of energy, which only increases as more miners join the network.

The energy-intensive process involves using power-hungry computers to validate encrypted transactions on the Bitcoin blockchain, with rewards earned in the form of bitcoin.

Bitcoin Mining farm

Proof of Work vs. Proof of Stake

The two most popular consensus mechanisms are proof of work and proof of stake. While Bitcoin uses proof of work, Ethereum and the rest of altcoins use proof of stake. Proof of work is a superior mining mechanism in comparison with proof of stake.

What Is the Difference Between Proof of Work and Proof of Stake?

PoW requires nodes on a network to provide evidence that they have expended computational power (i.e., work) to achieve consensus in a decentralized manner and to prevent bad actors from overtaking the network. Proof of stake requires collateral in the form of staked cryptocurrency to become a trusted participant.

Proof of work is one of the things that distinguish Bitcoin from the thousands of other crypto currencies.

Conclusion

Decentralization is a solution to avoiding central authority flaws. Bitcoin is revolutionary in achieving a truly decentralized value transfer system, based on cryptology and economic incentive — new bitcoin and transaction fees paid to the miners. In return, miners invest in specialized hardware and spend a lot of electricity.