What is Proof of Work (PoW)?
Our last thread introduced the topic of #consensus mechanisms which determine how #data is added to the #blockchain
In this 🧵 we look at consensus mechanisms that use Proof of Work:
Our last thread introduced the topic of #consensus mechanisms which determine how #data is added to the #blockchain
In this 🧵 we look at consensus mechanisms that use Proof of Work:
1/ A group of owls is called a Parliament.
And just as there are different ways to participate in a democracy (eg voting in a referendum vs electing a representative to decide on your behalf) - there are also different ways of participating in decision making on a #blockchain
And just as there are different ways to participate in a democracy (eg voting in a referendum vs electing a representative to decide on your behalf) - there are also different ways of participating in decision making on a #blockchain
3/ Nakamoto #consensus relies on a) proof of work to decide who gets to add the next block and b) ‘longest chain’ to decide which block it gets added to (you guessed it - the longest one)
4/ In proof of work all #nodes act as validators or #miners - they race to solve complex #cryptographic problems which in typical jargon is called #mining
5/ The winner of the race - that is the first validator to solve the problem gets to select the transaction data to include in the block, add it to the longest chain and receive the block reward
6/ The rest of the validators or miners then check to ensure the solution was correct and that the block was added to the longest chain
7/ Although proof of work is a trusted and robust method it is also very time and energy consuming because all #nodes are racing to solve the problem even though only one wins.
8/ So over time other methods of arriving at #consensus have been developed. Stay tuned for our next thread 🧵 which will explain Proof of Stake
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