1. What is Proof-of-Work?

Proof-of-Work, or PoW, is the original consensus algorithm in a Blockchain network.

In Blockchain, this algorithm is used to confirm transactions and produce new blocks to the chain. With PoW, miners compete against each other to complete transactions on the network and get rewarded.

In a network users send each other digital tokens. A decentralized ledger gathers all the transactions into blocks. However, care should be taken to confirm the transactions and arrange blocks.

This responsibility bears on special nodes called miners, and a process is called mining.

The main working principles are a complicated mathematical puzzle and a possibility to easily prove the solution.