Glossary

Proof of Work

Proof of Work (PoW) is a consensus algorithm used in various blockchain networks to validate transactions and add new blocks to the chain. In PoW, miners compete to solve complex cryptographic puzzles. The first miner to solve the puzzle gets the right to add a new block to the blockchain and is rewarded with cryptocurrency. This process requires significant computational effort and energy, ensuring security and preventing fraudulent activities by making it computationally infeasible to alter the blockchain without controlling a majority of the network's mining power.