Proof of work

Proof of work is one of two main blockchain consensus models, which ensure the validity of transactions in crypto trading. Although it uses a lot of computing power, it is found to be extremely use case in block mining.

Agenda:

• intro,
• How it works,
• Pros,
• Cons,
• Blockchains which use proof of work,
• Perspectives.

How it works?

Proof of work is basing on solving extremely complex math problem. In bitcoin network, miners solve the hash function and adjust the result for the target, which is basically the variable describing difficulty of adding new block.

More about hash and mining in my latest thread https://twitter.com/kacperhernacki/status/1545444041344565249?s=21

To sum up PoW is focusing on doing “work”. In bitcoin network, this work takes about 10 min, this work secures transactions and makes ecosystem functional. In this case, proof of work basis on solving hash function.

More about hash in this tweet: https://twitter.com/kacperhernacki/status/1544663304567721985?s=21

Pros of PoW

• high level of security,
• - provides decentralized model of validating transactions,
• - Allows miners to earn crypto rewards.

Cons of PoW:

• Inefficient with slow transactions speeds and expensive fees,
• High energy usage,
• Mining often requires expensive equipment.

Blockchains which use PoW:

• Bitcoin,
• Ethereum,
• Dogecoin,
• Litecoin,
• Monero.

Perspectives:

Proof of work is focusing on practically wasting or the computing power which is required to find a solution for math problem. Enemies of blockchains can throw arguments that it is not eco friendly, because all energy is “wasted”.

However, all energy which secures blockchains, is less then required in standard finances. Counted power used for all ATM machines is a lot greater than used in blockchains.

Moreover, it is not finally decided to waste all of that energy. One of the perfect ideas is to use this computing power for searching solutions in real live scientific problems.

It is not easy to implement, because a piece of energy has to secure network and the rest can be focused on solving problems. However, it can have a great impact on science and close mouth of critics.