Proof of Work (PoW)
By CoinGecko | Updated on Mar 03, 2020
An algorithm that rewards the first person that solves a computational problem (i.e. mining) to achieve distributed consensus. Miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain. It prevents spam and cyber attacks such as DDoS as it requires work (i.e. processing time) from the service requester.
Related Terms
Token
Blockchain based unit of value issued by an organization, which grants token holders a right to participate in a network.
Margin Call
Margin call takes place when investor's margin account falls below the required amount to stay afloat.
Delegated Proof-of-Stake (dPOS)
A consensus mechanism where selected members of a network are voted as delegates to validate transactions and produce blocks on a blockchain.
Private Keys
The alphanumeric string which allows transactions from the cryptocurrency address
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