Proof of Work

Proof of Work (PoW) is a consensus mechanism used in blockchains like Bitcoin to secure the network and validate transactions. In a PoW system, “miners” compete to solve complex cryptographic puzzles using computational power. The winner of this competition earns the right to add a new block to the chain and receives a cryptocurrency reward.

PoW is highly secure because attacking the network requires an enormous amount of energy, making it nearly impossible to take control of the blockchain. However, its major drawback is high energy consumption and limited scalability, leading to slower and more expensive transactions. For this reason, many newer blockchain projects are transitioning to alternative mechanisms like Proof of Stake (PoS), which are more energy-efficient.