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
Crypto Bubble
It is a speculation in the cryptocurrencies and the price of cryptocurrencies would go extremely high before the bubble bursts.
Pre-sale
A typically exclusive token sale event preceding a public ICO
Wallet Address
The address in which cryptocurrency can be stored, sent to and receive.
Non-Fungible Tokens (NFT)
They are collectible elements within the Ethereum blockchain under ERC-721, where each token refers to a single element with a certain value
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.