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 does “Immutable” mean? - Crypto in Plain English - Episode 149 - by cryptohunt.it

What does “Immutable” mean? - Crypto in Plain English - Episode 149 - by cryptohunt.it

What does “Immutable” mean? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Are you also tired of hearing those technical, hard to understand terms t...

22 Huhti 20221min

What is a Genesis Block? - Crypto in Plain English - Episode 148 - by cryptohunt.it

What is a Genesis Block? - Crypto in Plain English - Episode 148 - by cryptohunt.it

What is a Genesis Block? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, we explain in simple terms what a Genesis Block is. A Genesis block i...

21 Huhti 20222min

Can you really make crypto while running? - Crypto in Plain English - Episode 147 - by cryptohunt.it

Can you really make crypto while running? - Crypto in Plain English - Episode 147 - by cryptohunt.it

Can you really make crypto while running? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s look into a new trend: Apps that give you free...

20 Huhti 20222min

What is a custodial wallet? - Crypto in Plain English - Episode 146 - by cryptohunt.it

What is a custodial wallet? - Crypto in Plain English - Episode 146 - by cryptohunt.it

What is a custodial wallet? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about a different type of wallet. The so-called “custod...

20 Huhti 20222min

How can your crypto wallet also be your password to Web3? - Crypto in Plain English - Episode 145 - by cryptohunt.it

How can your crypto wallet also be your password to Web3? - Crypto in Plain English - Episode 145 - by cryptohunt.it

How can your crypto wallet also be your password to Web3? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you’ve ever come across one of those “We...

19 Huhti 20222min

Does Bitcoin have to be a Planet Killer? - Crypto in Plain English - Episode 144 - by cryptohunt.it

Does Bitcoin have to be a Planet Killer? - Crypto in Plain English - Episode 144 - by cryptohunt.it

Does Bitcoin have to be a Planet Killer? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. We’ve covered and complained about Bitcoin’s energy consumpt...

15 Huhti 20222min

What is Block Time? - Crypto in Plain English - Episode 142 - by cryptohunt.it

What is Block Time? - Crypto in Plain English - Episode 142 - by cryptohunt.it

What is Block Time? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s explore another one of those cryptic blockchain terms: Block Time. W...

14 Huhti 20222min

What is a Blockchain Bridge? - Crypto in Plain English - Episode 142 - by cryptohunt.it

What is a Blockchain Bridge? - Crypto in Plain English - Episode 142 - by cryptohunt.it

What is a Blockchain Bridge? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: What does a blockchain bridge do, and how does it work? The probl...

13 Huhti 20222min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
rss-rahamania
ostan-asuntoja-podcast
rahapuhetta
rss-laakispodi
rss-sisalto-kuntoon
herrasmieshakkerit
sijoituspodi
rss-draivi
inderespodi
rss-sami-miettinen-neuvottelija
rss-lahtijat
rss-bisnesta-bebeja
rss-karon-grilli
rss-seuraava-potilas
rss-paasipodi
vapauta-supervoimasi-podcast