BlockchainIntermediate#Consensus#Security
Proof of Work (PoW)
P
Definition
A consensus algorithm that requires validators to solve intensive computational puzzles to secure the network.
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Concept Diagram
Key Takeaways
1
PoW links blockchain security to physical energy expenditure through mining
2
It solved the double-spending problem creating the first trustless digital scarcity
3
Attacking PoW requires controlling 51% of global hashrate which is economically prohibitive
4
Most battle-tested consensus mechanism for censorship resistance
Practical Example
Bitcoin's network consumes roughly 150 TWh of electricity annually - equivalent to a small country - making a 51% attack cost-prohibitive at billions of dollars per hour.
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Related Terms
Blockchain
ASIC (Application-Specific Integrated Circuit)Specialized computer hardware designed exclusively for mining cryptocurrencies using specific algorithms like SHA-256.
Blockchain
Consensus MechanismA fault-tolerant process used in blockchain systems to achieve the necessary agreement on a single data value or network state.
Blockchain
MiningThe process of verifying complex mathematical problems to secure a blockchain network and earn newly issued tokens.
Blockchain
Proof of Stake (PoS)A consensus algorithm that chooses validators based on the number of tokens they hold and are willing to 'stake'.
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