Finance glossary
Proof of Work
Definition
A consensus method where miners solve puzzles to validate transactions.
Proof of work secures blockchains like Bitcoin by requiring miners to expend computing power solving cryptographic puzzles to add blocks and earn rewards. It is highly secure but energy-intensive, the main criticism that pushed some networks toward proof of stake.
In a sentence
Bitcoin's proof of work has miners burn electricity solving puzzles to secure the network.
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