Proof-of-Work consensus is a decentralized mechanism where participants compete to solve a difficult cryptographic puzzle to validate new blocks of transactions and add them to the blockchain. The first participant to solve the puzzle broadcasts the new block, and their solution is easily verifiable by others. This process consumes significant computational resources, making it costly to attempt malicious alterations to the network history. It provides a robust security foundation for many early blockchains.
Context
Proof-of-Work consensus is widely known as the mechanism securing Bitcoin and was a foundational innovation for decentralized digital currency. While praised for its security and resistance to attack, it faces criticism regarding its high energy consumption and potential for mining centralization. News often covers debates comparing Proof-of-Work with alternative consensus mechanisms like Proof-of-Stake, focusing on environmental impact, security trade-offs, and scalability limitations. Understanding this mechanism is essential for grasping the operational principles of major cryptocurrencies.
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