Proof of work in blockchain: Nakamoto laid the foundation for the revolutionary blockchain technology by creating the proof of work protocol. With this protocol one can reach consensus between devices that are on a distributed network. This is the crowning achievement of Bitcoin founder Satoshi Nakamoto.
What does POW stand for?
Pow stands for “proof of work” and it is evidence of a consensus protocol introduced by Bitcoin and widely used by other cryptocurrencies. This process is also known as mining and on the nodes on the network. These are also called miners. In the form of a proof, an answer to a mathematical problem emerges.
POW Proof of work
This requires a lot of work, but it can often be determined to be correct if the answer is reached. In order to solve these mathematical riddles, it is important to correctly determine the answers of the base via the nodes on the network with a long and random process. From a technical point of view, a problem could be solved on the first try, but this is unlikely. The answer must often be lower in number than the hash of the block, this is also known as the “target hash”. A target hash is a number that must be equal to the header of a hash block.
This must often be equal to or smaller than the new block, along with the reward this must be awarded to a miner. The lower the target, the more difficult it is to generate a block. A miner will always keep testing different unique values until a suitable one is found and produced. If the miner manages to solve the riddle, he wins the next block. Then it adds it to the chain and validates the transactions in it. In addition, he / she receives the reward that is linked to the block.
What does Proof of work process entail?
Each confirmed block in the chain rewards the miner when mining cryptocurrency. They mine these by means of the transaction costs that they have collected by sending the currency over the network. These are already determined in advance for the determined reward. This stimulates the miners to maintain a blockchain. The riddles that are solved are always very complex and expensive. This makes it important that rewards go. after all, it is important that miners stay and that they keep the incentive. It is also important that they can be easily verified.
Why was the POW system designed?
The pow system requires considerable computing power to ensure that image bitcoins are not mined too quickly. After all, the incentive for the miners must be monitored. In order to maintain a constant stimulus, it is important that the supply remains and that the network is well maintained. It is also important that security is in place and that everything is well maintained and secured. This is why the pow system is designed to keep the stimulus and safety in it.