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)

Sam Bankman-Fried pleads “not guilty” - but why? - Episode 333 - by cryptohunt.it

Sam Bankman-Fried pleads “not guilty” - but why? - Episode 333 - by cryptohunt.it

Sam Bankman-Fried pleads “not guilty” - but why? It’s Monday, Jan 9th - Welcome to the Cryptohunt Jam, where we spend a minute a day explaining the intersection of exciting new technologies and your w...

9 Tammi 20232min

Why banks fear crypto so much - Episode 332 - by cryptohunt.it

Why banks fear crypto so much - Episode 332 - by cryptohunt.it

Why banks fear crypto so much Ever wondered why banks never really talk about crypto publicly? Because they are afraid of it. Welcome to the Cryptohunt Jam, where we spend a minute a day explaining th...

6 Tammi 20233min

A critical look at decentralization: Part 3 – Maybe not a good idea after all? - Episode 331 - by cryptohunt.it

A critical look at decentralization: Part 3 – Maybe not a good idea after all? - Episode 331 - by cryptohunt.it

A critical look at decentralization: Part 3 – Maybe not a good idea after all? Welcome to a new year and to the Cryptohunt Jam, where we continue to spend a minute a day explaining the intersection of...

5 Tammi 20233min

A critical look at decentralization: Part 2 – In defense of giving power to the people - Episode 330 - by cryptohunt.it

A critical look at decentralization: Part 2 – In defense of giving power to the people - Episode 330 - by cryptohunt.it

A critical look at decentralization: Part 2 – In defense of giving power to the people Welcome to a new year and to the Cryptohunt Jam, where we continue to spend a minute a day explaining the interse...

4 Tammi 20232min

A critical look at decentralization: Part 1 – The erosion of trust - Episode 329 - by cryptohunt.it

A critical look at decentralization: Part 1 – The erosion of trust - Episode 329 - by cryptohunt.it

A critical look at decentralization: Part 1 – The erosion of trust Welcome to a new year and to the Cryptohunt Jam, where we continue to spend a minute a day explaining the intersection of exciting ne...

3 Tammi 20232min

Did Trump just make millions off an NFT collection? - Episode 328 - by cryptohunt.it

Did Trump just make millions off an NFT collection? - Episode 328 - by cryptohunt.it

Did Trump just make millions off an NFT collection? Welcome to a new year and to the Cryptohunt Jam, where we continue to spend a minute a day explaining the intersection of exciting new technologies ...

2 Tammi 20233min

This blockchain is crushing it behind the scenes - Episode 327 - by cryptohunt.it

This blockchain is crushing it behind the scenes - Episode 327 - by cryptohunt.it

This blockchain is crushing it behind the scenes Welcome to the Cryptohunt Jam, where we spend one minute a day explaining the intersection of exciting new technologies and your world. As always: In p...

30 Joulu 20222min

Starbucks is going crypto… but why? - Episode 326 - by cryptohunt.it

Starbucks is going crypto… but why? - Episode 326 - by cryptohunt.it

Starbucks is going crypto… but why? Welcome to the Cryptohunt Jam, where we spend one minute a day explaining the intersection of exciting new technologies and your world. As always: In plain English....

29 Joulu 20223min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
ostan-asuntoja-podcast
rss-rahamania
herrasmieshakkerit
rahapuhetta
rss-laakispodi
rss-sisalto-kuntoon
rss-sami-miettinen-neuvottelija
leadcast
rss-lahtijat
rss-bisnesta-bebeja
rss-seuraava-potilas
sijoituspodi
rss-karon-grilli
rss-juurisyy-johtamisesta-kilpailuetua
rss-draivi
rss-johtoajatuksia