An algorithm that rewards the first person that solves a computational problem (i.e. miningMining is the process through which cryptocurrency transactions are gathered, verified, and recorded into a digital ledger known as the... Read More) to achieve distributed consensusConsensus is what allows a distributed system (like the blockchain) to function as a decentralized peer-to-peer system without the need... Read More. Miners compete to solve difficult cryptographicCryptography - means "secret writing"—the ability to exchange messages that can only be read by the intended recipient. In cryptocurrency,... Read More puzzles in order to add the next blockGroups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records as users buy or sell... Read More on the blockchainA blockchain is a distributed database that is shared among the nodes of a computer network. Read More. It prevents spam and cyber attacks such as DDoS as it requires work (i.e. processing time) from the service requester.
