Page Summary
Proof of Work is a cryptographic model where one party proves to others that a specific amount of computational effort has been used. The others can confirm this easily. Cynthia Dwork and Moni Naor invented proof of work in 1993 to counter spam.
What is Proof of Work used for?
Bitcoin and other cryptocurrencies use proof of work to reach consensus within a decentralized network. Miners compete with each other to mint new cryptocurrencies and thus spend computational effort. This computation is also known as CPU cost function, client puzzle, and computational puzzle. Proof of Work and Proof of Stake are both Sybil deterrence mechanisms. The goal of Proof of Work is not to prove that certain tasks are completed, but that someone committed the hardware, time, and energy to do it.
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Stefan Grasic (Dipl.-Jur) is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level. Stefan began trading in 2010 as a college student. Money was tight,…