Proof of Work

Proof of Work (PoW) lets one party proof the execution of an algorithm to another party. In the BitcoinBitcoin is the first decentralized digital currency. It was created in 2009, by an anonymous founder or group of founders... More PoW system, miners proof the validity of the transactionA cryptocurrency transaction is an entry on the blockchain ledger, noting sender, receiver and number of coins transacted. More in a blockA collection of cryptocurrency transactions. Every few minutes (or seconds, depending on the blockchain) one miner or validator verifies the... More. This way, the PoW consensus algorithm solves the ‘double-spending problem’ making it impossible for one party to create new Bitcoin without the agreement of the other participants. The work, in this case, uses electricity to solve these complicated algorithms. Check more here.