Proof of work: consensus mechanism of Blockchain
So far we have discussed Immutability in blockchain, which means data on blocks can not be changed without a consensus protocol. Also, for validating any transaction after mining requires validity from other nodes in the network. Here we will discuss about that consensus namely proof of work.
In the world of decentralized networks like blockchain, the network is not governed by a single entity. But at its core, every network requires controllers to oversee chain operations and verify transactions. The idea of a consensus mechanism was created to address this problem.
Technically speaking, the consensus mechanism refers to the process through which the nodes, or the computers that make up the blockchain, validate the transactions on the network. There are other sorts of consensus techniques that can be used, including Proof of Work and Proof of Stake, among others. Here, we shall study Proof of Work in detail.
Proof of work has a long history that begins with the invention of the blockchain idea. To validate means to confirm a chained transaction. We have discussed in mining that each miner on the chain would first have to compete with other miners to figure out a mathematical riddle under this system. The miner that completes the transaction the quickest is rewarded with the opportunity to validate it and submit the block afterward. The network has also opted to award the miner with a predetermined quantity of cryptocurrency.
Now let us see how proof of work is operational in the blockchain system.
Each block of transactions in a cryptocurrency has a unique hash. A crypto miner must provide a target hash that is less than or equal to the block’s hash in order for the block to be confirmed.
Miners employ computing-intensive mining equipment to accomplish this. Being the first miner with the target hash will allow you to update the blockchain and collect cryptocurrency incentives.
One of the advantages associated with it is that the validation will be successfully finished in a safe and secure manner since it entails figuring out a challenging challenge and winning the transaction. Moreover, it enables the miners to receive cryptocurrency rewards.
The transaction here is less likely to be hacked and altered because it is thought of as the foundation for decentralized networks.
A lot of contradictions come up in this idea as it takes a lot of energy to complete a transaction, and many miners would be fighting for it. Adding on to it, this takes a long time because of how complicated it is, which causes a slow transaction speed on the network.
A lot of times, it is debated and called to question as the miners need to validate transactions with extremely high energy requirements, therefore they also need costly, specialized equipment that isn’t available to everyone.
In a nutshell, A decentralized consensus method known as “proof of work” compels network users to solve a mathematical problem in order to stop any sort of malicious activity.
