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Proof of Work (POW) is a very important security mechanism or method in blockchain networks. Simply put, it is a system that ensures that every transaction on the blockchain is correct and that no fraud is taking place. Bitcoin was the first to use this technology to show the world how it is possible to run a secure financial system without a bank or central authority.

1. What is Proof of Work?

POW is a mathematical competition. When a transaction occurs on a blockchain network, it has to be deposited in a 'block'. But before this block can be added to the chain, a very complex mathematical puzzle has to be solved. Solving this puzzle requires a lot of computer power and electricity. Since a lot of "work" or effort has to be done to solve this puzzle, it is called "Proof of Work".

2. How does it work? (Steps)

When users send crypto to each other, those transactions are collected in a pool. 'Miners', spread across the world, use their powerful computers to try to find a special mathematical number called a 'nonce'. The data is run through a hash function (such as SHA-256). The goal is to produce an output that meets certain conditions set by the network. The miner or computer that can solve this puzzle first informs the rest of the network. Other computers in the network quickly check to see if the solution is correct. If correct, the block is added to the chain. The successful miner is rewarded with new cryptocurrency (such as Bitcoin) and transaction fees.

3. Why is it so secure?

Once a block is added via PoW, it is almost impossible to change it. This is because changing a block requires solving the puzzles of all subsequent blocks again, which requires more than half of the world's computing power (called a 51% Attack). If someone wants to create a block with incorrect information, it will consume a huge amount of electricity, but the network will not accept it. As a result, cheating is financially harmful.

4. Advantages and disadvantages of PoW

The advantages are that PoW is the main reason why the Bitcoin network has not been hacked so far. Anyone from anywhere in the world can participate in mining. The disadvantages are that miners have to use a lot of electricity to solve complex puzzles, which is harmful to the environment. On the other hand, the Bitcoin network can only process about 7 transactions per second.

5. PoW vs PoS (Proof of Stake)

Many new cryptocurrencies (such as Ethereum 2.0) are currently using Proof of Stake (PoS). In PoS, instead of mining, coins are 'staked' or deposited. It uses much less electricity than PoW, but PoW is still unrivaled in terms of security.

Conclusion

Proof of Work is a "digital security wall" in the digital world. It ensures that we don't need to trust humans to transact money on the internet, we can trust mathematics. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

Me behind the camera & keyboard

I’ve always loved sharing my passions with you — from crypto and movie reviews to photography, storytelling, and blogging. Now, continuing that creative journey, I’ve stepped into a brand-new world — Gaming ! 🎮 | 🎥 On my YouTube channel Bokhtiar The Survivor — I’m consistently working to bring you the raw thrill of my gaming experiences — the emotions, the excitement, and those unforgettable moments that make every game feel alive.