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Author: Admin | 2025-04-28
Effort before they’re marked as valid.This is the proof-of-work mechanism in a nutshell.The Origins of Proof of WorkThe proof-of-work concept traces its roots to the 1990s. The term was coined by Cynthia Dwork and Moni Naor in their peer-reviewed study, Pricing via Processing or Combatting Junk Mail. Put simply, proof-of-work was a means to combat email spam and prevent server abuse. It required users to complete a computational puzzle before emails were processed.Fast forward to 2008 and the Bitcoin whitepaper adopted the proof-of-work mechanism. Instead of keeping emails safe, proof-of-work was implemented to secure the Bitcoin network. It ensures that only legitimate transactions are verified and posted to the blockchain. For instance, proof-of-work ensures that the same Bitcoins cannot be spent twice.Since Bitcoin was launched, other consensus mechanisms have been developed. One of the most popular is proof-of-stake (PoS), which is now used by the Ethereum blockchain. Although some Bitcoin stakeholders have argued for proof-of-stake to be implemented, proof-of-work remains the preferred option. This is because proof-of-work ensures higher levels of decentralization and network security.How Does PoW Work?Proof-of-work allows the Bitcoin ecosystem to verify transactions without needing third-party involvement. It ensures that the original Bitcoin ethos is respected; true peer-to-peer transactions between senders and receivers. However, without ‘miners’, the proof-of-work mechanism wouldn’t function.Anyone can be a miner. It’s just a case of connecting specialist hardware to a computer device. Every 10 minutes, each mining device will attempt to solve the next cryptographic puzzle. This is based on a ‘trial and error’ process. Mining devices constantly attempt new solutions until the puzzle is solved. The first miner to solve the puzzle wins the 10-minute Bitcoin reward. And the process repeats again.Still asking the question: What is proof of work? Let’s take a closer look at the fundamentals to help clear the mist.Mining ProcessMining sits at the heart of proof-of-work and the Bitcoin network. It helps keep Bitcoin decentralized through incentivization. This is because miners are financially motivated to ensure only legitimate transactions are verified. And that anything else is rejected and removed from the Bitcoin ledger. The financial reward for solving a mining reward was originally 50 BTC.Within the Bitcoin code, the mining reward is reduced by 50% every 210,000 blocks. One block is mined in about 10 minutes, so the Bitcoin halving event takes place approximately every four years. So, in 2012, 2016, and 2020, the mining reward was reduced
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