So in this blog, we will discuss what is Proof Of Work In Blockchain.
Imagine you're in a race with a bunch of other people, and the winner gets a reward. In this race, you have to solve a tricky math problem before you can cross the finish line. The problem is tough and takes a lot of time and computer power to solve.
Now, everyone in the race is competing to solve this math problem as quickly as possible. They do this by using their computers to guess the answer to the problem over and over again. The first person to find the correct answer gets to cross the finish line and claim the reward.
This is how Proof of Work works in the world of cryptocurrencies like Bitcoin:
Computers (Miners): Instead of people, we have computers called miners. These miners are trying to solve a complex math problem.
Math Problem (Hash Function): The math problem is generated by a special algorithm called a hash function. It's like a puzzle that needs solving.
Competition (Mining): Miners compete against each other to solve this puzzle by guessing different answers. They use their computer's processing power to make these guesses.
Finding the Solution (Hash Output): The goal is to find a specific answer, known as a "hash output," that meets certain criteria set by the network.
Proof of Success: When a miner finds the correct answer, they announce it to the network. Other miners can quickly verify that the answer is correct.
Reward: The miner who solves the puzzle first gets rewarded with newly created cryptocurrency (like Bitcoin) and any transaction fees associated with the block of transactions they've just verified.
Blockchain Security: This process of solving complex math problems to validate transactions and create new blocks is what helps secure the blockchain network. It makes it difficult for anyone to manipulate transactions or create fake transactions.
So, in simple terms, Proof of Work is like a competitive race where computers race to solve mathematical problems, and the winner gets rewarded with cryptocurrency. It's a way to ensure the security and integrity of blockchain networks like Bitcoin.
💡On September 15/2022, Ethereum moved to Proof Of Stake from Proof Of Work.
Consensus in Blockchain
In Blockchain, consensus refers to the mechanism by which all participants agree on the validity of transactions and the state of the ledger.
Consensus Protocol
A consensus protocol in the context of blockchain is a set of rules and algorithms that enable all participants in a decentralized network to agree on the validity of transactions and achieve a consistent state of the ledger. Popular consensus protocols include Proof of Work (PoW), Proof of Stake (PoS), Delegated Proof of Stake (DPoS), Practical Byzantine Fault Tolerance (PBFT), and many others. These protocols ensure that all nodes in the network agree on the order and validity of transactions without the need for a central authority.
Sybil Attack
A Sybil Attack is a problem where one participant or a group of participants pretends to be many different users or groups.
Chain Selection Rules
The chain selection rule is the set of criteria or algorithms that nodes in a blockchain network follow to decide which version of the blockchain to accept and continue building upon. It helps ensure that all nodes in the network reach a consensus on the state of the blockchain.
💡The Combination of Proof Of Work and the Largest Chain is called Nakamoto Consensus.
That's a wrap, please like it if you find it useful.
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