The security and continuity of blockchains is ensured by various consensus algorithms. Proof of Work (PoW) is the first and most well-known of these. Bitcoin (BTC), the first blockchain and cryptocurrency, uses the Proof of Work consensus algorithm. So, which are the most well-known Proof of Work coins, let’s see… You can browse here for information about Litecoin (LTC).
Proof of Work coins
Cryptocurrencies of blockchains using the Proof of Work consensus mechanism are known as Proof of Work coins. The most well-known Proof of Work coins are Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Litecoin (LTC), and Ethereum (ETH), etc.
What is Proof of Work?
Proof of Work is a security protocol created to prevent information from being manipulated and changed by malicious people within a network or system. Although it came into our lives with the publication of the Bitcoin (BTC) whitepaper in 2008, the concept of Proof of Work was actually first introduced in a 1993 journal article written by Cynthia Dwork and Moni Naor. In 1999, Adam Back invented the Hashcash mechanism to prevent DoS attacks and e-mail spam using the Proof of Work model. Hascash will later become one of the foundations of Bitcoin.
When the person or people named Satoshi Nakamoto came up with the idea of Bitcoin blockchain in 2008, they adopted the Proof of Work consensus algorithm to ensure the decentralization and security of the network. Thus, the Proof of Work algorithm began to be used functionally. After this date, many PoW coins have been released.
How does Proof of Work work?
Proof of Work is a mechanism that prevents a person from taking over the blockchain by taking over majority nodes in the network. In other words, Proof of Work prevents attackers from dominating the blockchain by capturing 51 percent of the nodes in the network.
The Proof of Work mechanism works thanks to people called miners. With the computing power of their computers, miners are responsible for solving various mathematical problems, performing transactions on the network, verifying them and adding them to the blockchain. The first miner who manages to verify the transaction by solving a problem is rewarded with cryptocurrency. In other words, miners compete with each other to earn rewards for the blocks they add to the blockchain.
Miners’ computers or mining equipment have a certain computing power capacity. This is called hash power. The more devices connected to the blockchain structure, that is, the more hash power allocated to the network, the higher the security and efficiency.
However, mining operations require high computational power. This is a serious cost and prevents a person from dominating the network.
Caution: The information contained in this content is for general informational purposes only. It is not investment advice.
For information about cryptocurrency: https://en.wikipedia.org/wiki/Cryptocurrency