Proof of Work(PoW)
A consensus mechanism where miners compete to solve computational puzzles, with the winner adding the next block and earning rewards.
In-Depth Explanation
PoW secures Bitcoin and (pre-merge) Ethereum. Miners expend real-world energy to find valid block hashes, making attacks economically prohibitive. Critics cite environmental concerns; proponents argue the energy expenditure is precisely what makes PoW secure and censorship-resistant. The difficulty adjusts to maintain consistent block times regardless of total hashrate.
Related Terms
Mining
The process of using computational power to validate transactions and add new blocks to a proof-of-work blockchain.
Consensus Mechanism
The method by which a blockchain network agrees on the current state of the ledger and validates new transactions.
Hash
A fixed-size output produced by a cryptographic function that uniquely represents input data.
Application-Specific Integrated Circuit
ASICSpecialized hardware designed for a single purpose, typically mining a specific cryptocurrency algorithm.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.