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)

Who builds cryptohunt? - Crypto in Plain English - Episode 101 - by cryptohunt.it

Who builds cryptohunt? - Crypto in Plain English - Episode 101 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you have just a minute or two, save this episode for your next run because this is a 10 min specia...

15 Feb 202210min

What is cryptohunt? - Crypto in Plain English - Episode 100 - by cryptohunt.it

What is cryptohunt? - Crypto in Plain English - Episode 100 - by cryptohunt.it

What is cryptohunt? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto – and can you believe this is already episode 100? Today, to celebrate the milestone, we’ll talk abo...

14 Feb 20222min

NFT Deep Dive: What does minting an NFT mean? - Crypto in Plain English - Episode 99 - by cryptohunt.it

NFT Deep Dive: What does minting an NFT mean? - Crypto in Plain English - Episode 99 - by cryptohunt.it

NFT Deep Dive: What does minting an NFT mean? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Welcome to our last episode in the mini series on NFTs....

11 Feb 20222min

NFT Deep Dive: How did some NFTs become so crazy expensive? - Crypto in Plain English - Episode 98 - by cryptohunt.it

NFT Deep Dive: How did some NFTs become so crazy expensive? - Crypto in Plain English - Episode 98 - by cryptohunt.it

NFT Deep Dive: How did some NFTs become so crazy expensive? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today we look at the reasons that some NF...

10 Feb 20221min

NFT Deep Dive: What are NFT collections and how are they created? - Crypto in Plain English - Episode 97 - by cryptohunt.it

NFT Deep Dive: What are NFT collections and how are they created? - Crypto in Plain English - Episode 97 - by cryptohunt.it

NFT Deep Dive: What are NFT collections and how are they created? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Bored Ape Yacht Club or Cryptopunks...

9 Feb 20222min

NFT Deep Dive: Where do I browse and buy NFTs? - Crypto in Plain English - Episode 96 - by cryptohunt.it

NFT Deep Dive: Where do I browse and buy NFTs? - Crypto in Plain English - Episode 96 - by cryptohunt.it

NFT Deep Dive: Where do I browse and buy NFTs? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. By now, you’ve probably asked yourself: Everyone’s tal...

8 Feb 20222min

NFT Deep Dive: Why pay millions for a simple JPG that anyone can just download? - Crypto in Plain English - Episode 95 - by cryptohunt.it

NFT Deep Dive: Why pay millions for a simple JPG that anyone can just download? - Crypto in Plain English - Episode 95 - by cryptohunt.it

NFT Deep Dive: Why pay millions for a simple JPG that anyone can just download? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you are new to the...

7 Feb 20221min

What is Facebook’s crypto currency Libra and what happened to it? - Crypto in Plain English - Episode 94 - by cryptohunt.it

What is Facebook’s crypto currency Libra and what happened to it? - Crypto in Plain English - Episode 94 - by cryptohunt.it

What is Facebook’s crypto currency Libra and what happened to it? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Did you know that Facebook was work...

4 Feb 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
utbytte
pengepodden-2
tid-er-penger-en-podcast-med-peter-warren
livet-pa-veien-med-jan-erik-larssen
finansredaksjonen
morgenkaffen-med-finansavisen
rss-markedspuls-2
lederpodden
okonomiamatorene
liberal-halvtime
rss-politisk-preik
rss-pa-konto
stormkast-med-valebrokk-stordalen