Proof of work (PoW)An algorithm that rewards the first person that solves a computational problem (i.e. mining) to achieve distributed consensus. Miners compete... Read More is a type of algorithm that rewards the first user (minerMiner can refer to either a computer that performs the cryptographic hashing function required to add transaction data to the... Read More) that succeeds in solving a complex computational problem (miningMining is the process through which cryptocurrency transactions are gathered, verified, and recorded into a digital ledger known as the... Read More). This system can 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 or agreement amongst multiple users on the blockchain networkA blockchain network is a decentralized system that allows for peer-to-peer transactions. The main components of a blockchain network are... Read More. Miners in a proof of work system compete to solve cryptographicCryptography - means "secret writing"—the ability to exchange messages that can only be read by the intended recipient. In cryptocurrency,... Read More problems to add a blockGroups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records as users buy or sell... Read More to the blockchainA Blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a... Read More. A proof of work system prevents spam and cyberattacks such as DDoS by requiring computational processing time from miners.
