Proof-of-work (PoW)

Proof-of-work (PoW) is a consensus mechanism used in blockchain networks to validate transactions and generate new blocks through a process that requires computational effort. In the PoW process, network participants known as "miners" solve complex mathematical problems to validate and confirm transactions, and the first miner to successfully solve the problem is rewarded with newly minted cryptocurrencies as an incentive. The PoW algorithm serves as a critical component of blockchain security by making it prohibitively difficult for a malicious actor to alter the network's transaction history. Any attempt to modify or corrupt the blockchain would require an enormous amount of computational resources, making such an attack unfeasible and not cost-effective. This makes PoW a key feature of the decentralized, trustless nature of blockchain networks. PoW was first introduced in 1993 as a defense against denial-of-service (DoS) attacks before it was later adapted by Satoshi Nakamoto for use in the Bitcoin blockchain. Today, PoW is widely used in various cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, among others.