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

Episoder(373)

What is the Ethereum Merge and when is it happening? - Crypto in Plain English - Episode 229 - by cryptohunt.it

What is the Ethereum Merge and when is it happening? - Crypto in Plain English - Episode 229 - by cryptohunt.it

What is the Ethereum Merge and when is it happening? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. The so-called Ethereum Merge has been all over ...

15 Aug 20221min

What is Decentraland... and what does it have to do with NFTs? - Crypto in Plain English - Episode 228 - by cryptohunt.it

What is Decentraland... and what does it have to do with NFTs? - Crypto in Plain English - Episode 228 - by cryptohunt.it

What is Decentraland... and what does it have to do with NFTs? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Ever wondered what people actually re...

12 Aug 20221min

Barbie is now an NFT - Crypto in Plain English - Episode 227 - by cryptohunt.it

Barbie is now an NFT - Crypto in Plain English - Episode 227 - by cryptohunt.it

Barbie is now an NFT Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Barbie, the iconic plastic doll that lives in hundreds of millions of kids' toy...

11 Aug 20221min

How Ray Ban is betting on the Metaverse with virtual sunglasses - Crypto in Plain English - Episode 226 - by cryptohunt.it

How Ray Ban is betting on the Metaverse with virtual sunglasses - Crypto in Plain English - Episode 226 - by cryptohunt.it

How Ray Ban is betting on the Metaverse with virtual sunglasses Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Remember the sunglasses Tom Cruise w...

10 Aug 20221min

What are "NFTiffs", the crypto-related jewelry from Tiffany? - Crypto in Plain English - Episode 225 - by cryptohunt.it

What are "NFTiffs", the crypto-related jewelry from Tiffany? - Crypto in Plain English - Episode 225 - by cryptohunt.it

What are "NFTiffs", the crypto-related jewelry from Tiffany? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Luxury jewelry brand Tiffany just relea...

9 Aug 20221min

What are the Nike’s Cryptokick sneakers? - Crypto in Plain English - Episode 224 - by cryptohunt.it

What are the Nike’s Cryptokick sneakers? - Crypto in Plain English - Episode 224 - by cryptohunt.it

What are the Nike’s Cryptokick sneakers? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. This week, we are taking a deeper look at how brands are ta...

8 Aug 20221min

What is "Flippening"? - Crypto in Plain English - Episode 223 - by cryptohunt.it

What is "Flippening"? - Crypto in Plain English - Episode 223 - by cryptohunt.it

What is "Flippening"? Welcome to the cryptohunt jam where we spend one minute a day explaining crypto. In plain English. Ever hear a crypto enthusiast get excited about an event they call "flippening"...

5 Aug 20221min

What is the Howey Test? - Crypto in Plain English - Episode 222 - by cryptohunt.it

What is the Howey Test? - Crypto in Plain English - Episode 222 - by cryptohunt.it

What is the Howey Test? Welcome to the cryptohunt jam where we spend one minute a day explaining crypto. In plain English. You've probably just listened to yesterday's episode on Uniswap, the decentra...

4 Aug 20222min

Populært innen Business og økonomi

lydartikler-fra-aftenposten
stopp-verden
dine-penger-pengeradet
rss-penger-polser-og-politikk
e24-podden
rss-borsmorgen-okonominyhetene
pengesnakk
pengepodden-2
tid-er-penger-en-podcast-med-peter-warren
utbytte
livet-pa-veien-med-jan-erik-larssen
rss-markedspuls-2
liberal-halvtime
finansredaksjonen
morgenkaffen-med-finansavisen
lederpodden
rss-politisk-preik
rss-pa-konto
okonomiamatorene
rss-investering-gjort-enkelt