What is Proof-of-Work in Blockchain?

The blockchain’s Proof of Work (PoW) is a consensus algorithm to confirm transactions and add a block to the network.

How it works

• Miners compete against each other in solving complex computational puzzles, these puzzles are easy to solve but very difficult to verify the correct solution.
• Once a miner has found the solution to the puzzle, they will be able to broadcast a block to the network.
• This block has a unique hash code, which is the proof of work of the miner that added this block to the blockchain.
• All the other miners will verify the solution using this unique hash code.
• In return, the miners who solve the problem will be rewarded.

Benefits of PoW Algorithm

• It prevents networks from numerous cyber attacks. A successful attack requires a lot of computational work and time, which costs more than the reward achievable by adding a block through PoW.

Downside of PoW Algorithm

Mining requires expensive computer hardware, that consumes large amounts of power.