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.

Avsnitt(373)

What are the economics of mining Bitcoin? - Crypto in Plain English - Episode 53 - by cryptohunt.it

What are the economics of mining Bitcoin? - Crypto in Plain English - Episode 53 - by cryptohunt.it

What are the economics of mining Bitcoin? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about what it takes to make money mining ...

9 Dec 20212min

What is Coin Burning? - Crypto in Plain English - Episode 52 - by cryptohunt.it

What is Coin Burning? - Crypto in Plain English - Episode 52 - by cryptohunt.it

What is Coin Burning? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. In the last two episodes we explained how halving slows down the rate at which ...

8 Dec 20211min

Is Bitcoin Halving a good thing? - Crypto in Plain English - Episode 51 - by cryptohunt.it

Is Bitcoin Halving a good thing? - Crypto in Plain English - Episode 51 - by cryptohunt.it

Is Bitcoin Halving a good thing? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk more about Bitcoin Halving: Why it was likely made...

7 Dec 20211min

What is Bitcoin Halving? - Crypto in Plain English - Episode 50 - by cryptohunt.it

What is Bitcoin Halving? - Crypto in Plain English - Episode 50 - by cryptohunt.it

What is Bitcoin Halving? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about Halving of Bitcoin. “Bitcoin Halving” refers to spec...

6 Dec 20211min

What is Layer 2? - Crypto in Plain English - Episode 49 - by cryptohunt.it

What is Layer 2? - Crypto in Plain English - Episode 49 - by cryptohunt.it

What is Layer 2? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s understand what Layer 2 is. Layer 2 refers to blockchains that build on...

3 Dec 20211min

What’s different between investing in crypto versus investing in stock? - Crypto in Plain English - Episode 48 - by cryptohunt.it

What’s different between investing in crypto versus investing in stock? - Crypto in Plain English - Episode 48 - by cryptohunt.it

What’s different between investing in crypto versus investing in stock? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about the b...

2 Dec 20212min

What is Miami Coin and why was it created? - Crypto in Plain English - Episode 47 - by cryptohunt.it

What is Miami Coin and why was it created? - Crypto in Plain English - Episode 47 - by cryptohunt.it

What is Miami Coin and why was it created? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about Miami Coin: What it is and why the...

1 Dec 20212min

Is crypto going to replace real money? - Crypto in Plain English - Episode 46 - by cryptohunt.it

Is crypto going to replace real money? - Crypto in Plain English - Episode 46 - by cryptohunt.it

Is crypto going to replace real money? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, we discuss if crypto will ever replace traditional mone...

30 Nov 20211min

Populärt inom Business & ekonomi

framgangspodden
varvet
badfluence
rss-jossan-nina
rss-borsens-finest
uppgang-och-fall
rss-svart-marknad
avanzapodden
borsmorgon
rss-dagen-med-di
rss-kort-lang-analyspodden-fran-di
rss-den-nya-ekonomin
tabberaset
svd-tech-brief
fill-or-kill
lastbilspodden
24fragor
rss-inga-dumma-fragor-om-pengar
rss-veckans-trade
kapitalet-en-podd-om-ekonomi