What is Proof-of-Work in Blockchain?

The blockchain’s Proof of Work (PoW) is a consensus algorithm to confirm transactions and add a block to the network.

How it works

• MinersMiners a group of people competing against each other to complete the transaction on the network. compete against each other in solving complex computational puzzles, these puzzles are easy to solve but very difficult to verify the correct solution.
• Once a miner has found the solution to the puzzle, they will be able to broadcast a block to the network.
• This block has a unique hash code, which is the proof of work of the miner that added this block to the blockchain.
• All the other miners will verify the solution using this unique hash code.
• In return, the miners who solve the problem will be rewarded.

Benefits of PoW Algorithm

• It prevents networks from numerous cyber attacks. A successful attack requires a lot of computational work and time, which costs more than the reward achievable by adding a block through PoW.

Downside of PoW Algorithm

MiningThe process in which miners (a group of people) compete against each other to complete the transaction on the network is called mining. requires expensive computer hardware, that consumes large amounts of power.