The Proof of Work Protocol: How It Affects the Future of Cryptocurrency

The Proof of Work Protocol: How It Affects the Future of Cryptocurrency | Docmedio
Proof of Work is the process of solving a mathematical puzzle that requires significant effort on the part of the solver. The difficulty of this puzzle, and hence how much time it takes to solve, is dependent on how many people are attempting to solve it

What is Proof of Work?

Proof of work is a protocol that requires some work from the service requester, usually meaning processing time by a computer. One example is Bitcoin, where the proof of work is finding SHA-256 hashes.

Proof of work cryptocurrency generates new blocks by solving cryptographic puzzles. The difficulty of these puzzles increases as more people try to solve them (making it more difficult to generate new blocks). This ensures that no one can generate blocks too quickly, which could compromise the blockchain and devalue the currency.

Example of Proof of Work

One way of verifying a piece of work is by checking its hashing functions, a long number that corresponds with the piece of work. In this case, it corresponds to block 660000, mined on December 4, 2020 is 00000000000000000008eddcaf078f12c69a439dde30dbb5aac3d9d94e9c18f6 for successful hash the miners got a block reward of as much as 6.25 BTC

That block will always contain 1,666 transactions involving over 745 bitcoins. Any attempt to change a single transaction amount (even by 0.00001 BTC) would yield an unrecognizable result in the group of transactions and the header of the previous block, and the network would reject the fraud attempt.