What is “Proof Of Work”? - Crypto in Plain English – Episode 19 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it22 Loka 2021

What is “Proof Of Work”? - Crypto in Plain English – Episode 19 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today we explain how “Proof of Work” works.

First, remember that cryptocurrencies validate transactions by checking each transaction with multiple decentralized computers. And if enough of those all come to the same conclusion, they move on to the next transaction.

This is like asking a room filled with accountants to check your credit card statements. If they all have the same final balance, you trust the result.

But there is one problem - because things are decentralized, anyone can mine a blockchain, or become an accountant. Say I send a bunch of friends into your room and tell them all to cheat on the numbers, then you wouldn’t know which result to trust.

Proof of Work reduces the incentive to do that. Here, the accountants all have to solve the same math puzzle and the quickest of them gets to work on my credit card statements and collect a reward for doing so. But if someone cheated, the results wouldn’t add up, they would have wasted a lot of time on the puzzle, and everybody has to start over without getting a reward. What was a simple cheat before, now becomes so time consuming that I can’t convince my friends to help.

And that’s how proof of work also works in cryptocurrencies, only that the accountants are computers, the puzzle is an algorithm, and the statements are transactions.

And next time, we’ll talk about “Proof of Stake” in more detail, which is the alternative to “proof of work”.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

Jaksot(373)

What is a Crypto Contagion? - Crypto in Plain English - Episode 301 - by cryptohunt.it

What is a Crypto Contagion? - Crypto in Plain English - Episode 301 - by cryptohunt.it

What is a Crypto Contagion? Welcome to the Cryptohunt Jam, where we spend one minute a day explaining crypto. In plain English. You’ve seen the news: People fear a so-called "crypto contagion", which ...

23 Marras 20222min

Why we believe in the future of web3 - Crypto in Plain English - Episode 300 - by cryptohunt.it

Why we believe in the future of web3 - Crypto in Plain English - Episode 300 - by cryptohunt.it

Get Crypto Certified Here! Welcome to the Cryptohunt Jam, where we spend one minute a day explaining crypto. In plain English. … But today, we mix it up again. It’s a special episode. For 1 and a half...

22 Marras 20229min

FTX - The incredible revelations we just heard about - Crypto in Plain English - Episode 299 - by cryptohunt.it

FTX - The incredible revelations we just heard about - Crypto in Plain English - Episode 299 - by cryptohunt.it

FTX - The incredible revelations we just heard about Welcome to the Cryptohunt Jam, where we spend one minute a day explaining crypto. In plain English. Just when you thought the drama around FTX, the...

21 Marras 20223min

How to create a crypto wallet and take control of your funds - Crypto in Plain English - Episode 298 - by cryptohunt.it

How to create a crypto wallet and take control of your funds - Crypto in Plain English - Episode 298 - by cryptohunt.it

How to create a crypto wallet and take control of your funds Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. In light of FTX’s collapse, the amount ...

18 Marras 20223min

How to save crypto keys for the long run - Crypto in Plain English - Episode 297 - by cryptohunt.it

How to save crypto keys for the long run - Crypto in Plain English - Episode 297 - by cryptohunt.it

How to save crypto keys for the long run Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Remember yesterday's episode about those pesky, hard to mem...

17 Marras 20223min

Crypto keys: Dos and donts - Crypto in Plain English - Episode 296 - by cryptohunt.it

Crypto keys: Dos and donts - Crypto in Plain English - Episode 296 - by cryptohunt.it

Crypto keys: Dos and donts Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Today, we’ll pick up where we left off yesterday. Remember that our goal ...

16 Marras 20222min

Why crypto keys are necessary, but so hard to remember - Crypto in Plain English - Episode 295 - by cryptohunt.it

Why crypto keys are necessary, but so hard to remember - Crypto in Plain English - Episode 295 - by cryptohunt.it

Why crypto keys are necessary, but so hard to remember Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. This week, we’ll host several episodes to hel...

15 Marras 20223min

Why exchanges like FTX lose customer funds and how you can protect yourself - Crypto in Plain English - Episode 294 - by cryptohunt.it

Why exchanges like FTX lose customer funds and how you can protect yourself - Crypto in Plain English - Episode 294 - by cryptohunt.it

Why exchanges like FTX lose customer funds and how you can protect yourself Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Just when you thought th...

14 Marras 20222min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
ostan-asuntoja-podcast
rss-rahamania
rahapuhetta
rss-laakispodi
rss-sisalto-kuntoon
herrasmieshakkerit
rss-lahtijat
rss-bisnesta-bebeja
rss-seuraava-potilas
inderespodi
rss-sami-miettinen-neuvottelija
leadcast
timanttia-hiomassa
rss-kohti-unelmia
rss-juurisyy-johtamisesta-kilpailuetua
rss-porssipodi