ℹ️About POW mining

Proof of Work (POW) consensus is the mechanism of choice for the majority of cryptocurrencies currently in circulation. The algorithm is used to verify the transaction and create a new block in the blockchain. The idea for Proof of Work(PoW) was first published in 1993 by Cynthia Dwork and Moni Naor and was later applied by Satoshi Nakamoto in the Bitcoin paper in 2008. The term “proof of work” was first used by Markus Jakobsson and Ari Juels in a publication in 1999.

How Does PoW Work?

The PoW consensus algorithm involves verifying a transaction through the mining process. This section focuses on discussing the mining process and resource consumption during the mining process.

Mining:

The Proof of Work consensus algorithm involves solving a computationally challenging puzzle in order to create new blocks in the Bitcoin blockchain. The process is known as ‘mining’, and the nodes in the network that engages in mining are known as ‘miners’.

• The incentive for mining transactions lies in economic payoffs, where competing miners are getting reward and a small transaction fee.

• This reward will get reduced with time.