Proof-of-work (PoW)

The proof-of-work consensus is the original mining consensus used in the Bitcoin network. Mining with a proof-of-work consensus means that a miner must have hardware equipment that is able to solve complex mathematical functions. So in this type of consensus, miners' computing power will define their mining power.

Proof of work is what cryptocurrency miners must show, and show the fastest, to win the right to mine a block of crypto. The “work” is solving highly complex math problems, and the “proof” is the solution to the problem.

Computers around the world specialized for quickly solving these complex math problems compete against each other to solve the puzzle, earning the right to verify the next block of crypto transactions. The winning miner that verifies the block and earns a reward, paid in cryptocurrency.

Proof-of-work consensus requires massive amounts of energy to work. This is one of the main flaws of PoW.

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About Scorechain

Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.

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