Proof-of-Work (PoW)
Bitcoin’s consensus mechanism where miners compute SHA-256 hashes until a valid block hash meets the target difficulty.
PoW is the backbone of Bitcoin: miners expend computational resources to produce valid blocks. They combine a block’s data with a nonce, repeatedly hashing until the output is below the difficulty threshold. The ‘work’ is verifiable by any node but extremely costly to replicate at scale, deterring double-spends or chain rewrites. PoW secures the blockchain without a central authority: to attack, one must outcompete honest miners in raw hashing power. Critics cite high energy use, while supporters argue it underpins Bitcoin’s robust, permissionless security.
Key takeaways
Requires massive computational effort to propose valid blocks
Ensures security by making attacks prohibitively expensive
Fundamental to Bitcoin’s decentralized consensus design