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What is Proof of Work?
Primex Finance avatar
Written by Primex Finance
Updated over a week ago

Proof of Work (PoW) is one of the consensus methods designed to secure a blockchain network and verify transactions. Miners compete in solving complex mathematical tasks, and the first who finds the solution adds a new block of transactions to the blockchain. Solving these problems demands significant computational power and energy consumption. When a block is found, it becomes an immutable part of the blockchain, subject to verification by other participants.

PoW safeguards the network by making it costly and time-intensive to manipulate the blockchain. One notable aspect of PoW is the intentional slowing down of the puzzle-solving process. This is achieved by adjusting the difficulty level of the puzzles based on the overall computational power in the network. As more miners join the network and contribute computational power, the difficulty increases, making it harder to solve the puzzles. This mechanism is designed to maintain a consistent rate of block creation and ensure the steady issuance of new tokens. The deliberate slowing down of PoW helps to ensure the scarcity and value of the blockchain networks' native digital assets.

By making the process more challenging over time, PoW prevents rapid inflation and promotes a controlled supply of newly minted tokens. As a result, PoW creates a system where the value of its native assets is primarily determined by market demand and supply. This consensus mechanism is commonly associated with digital assets such as Bitcoin.

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