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What Is Proof-of-Work (PoW)?
- Proof-of-Work (PoW) is a consensus mechanism used in blockchain networks to secure transactions and prevent double spending.
- In PoW, network participants solve complex puzzles using computational power to add new blocks to the blockchain.
- Cryptocurrencies like Bitcoin, Litecoin, and others use PoW for transaction validation.
- PoW ensures adding blocks is hard but verifying them is easy, maintaining network decentralization and security.
- PoW has been critiqued for its high energy consumption, as mining operations consume significant electricity.
- Despite energy costs, PoW remains widely used for its enhanced security and reliability.
- The history of PoW includes key developments from 1993 when it was proposed to its integration in Bitcoin's whitepaper in 2008.
- PoW's purpose in blockchain networks is to replace central authorities, ensuring decentralized and trustless transactions.
- The PoW process involves miners solving cryptographic puzzles to add blocks, receive rewards, and validate transactions.
- Advantages of PoW include proven security, decentralization, fair competition, and no reliance on identity or trust.
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