Proof of Work (PoW) is a consensus mechanism used by cryptocurrencies like Bitcoin, where miners use computational power to solve complex puzzles in order to validate transactions and add blocks to the blockchain. The first miner to solve the puzzle is rewarded with new coins. While PoW ensures security and decentralization, it consumes a large amount of energy, raising concerns about its sustainability.
In PoW, miners compete to find a nonce that, when combined with transaction data, produces a valid hash. This process secures the network but is energy-intensive compared to other methods like Proof of Stake (PoS), which uses less energy. Despite its drawbacks, PoW has been widely used in cryptocurrencies, but interest is growing in more efficient alternatives for the future.
