PoW stands for Proof of Work, an algorithm found in Blockchain networks to obtain trustless and distributed consensus. PoW is an alternative to POS.
Furthermore, a trustless and distributed consensus system translates to the fact that if you don’t aim to send/receive money from an individual, you don’t have to trust in third-party services.
PoW was first introduced as a concept by Moni Naor and Cynthia Dwork in 1993 but got the official term in 1999 by Markus Jakobsson and Ari Juels in 1999.
However, the concept wasn’t broadly used until Satoshi Nakamoto used it in the Bitcoin network.
PoW coins got miners competing against each other in hopes of confirming numerous transactions, thus being rewarded what a block has to offer.
PoW needs users to “work” to obtain rewards.
The work translates to crypto calculations required to confirm a network transaction. Basically, miners are working to be the first to solve a correct problem first. The solution to that problem is called a “hash.”
Let’s see some top PoW coins:
- Ethereum – Ethereum works on PoW consensus since it was initially launched. The team behind the crypto is working on switching to PoS (ETH 2.0), though, but at the moment, that process hasn’t been successful yet.
- Litecoin – As it is a lighter copy of Bitcoin, it makes sense that it is a PoW coin too.
- Bitcoin Cash – It is similar to Litecoin, meaning that it is a copy of Bitcoin, thus validating transactions via PoW.
- Monero – The privacy-oriented crypto also works on a PoW model, making it lucrative.
- Ethereum Classic – Though it is a copy of Ethereum, it works via PoW and doesn’t plan to switch to PoS, in contrast to the original.
Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post. In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.