Proof of Work
A consensus method where miners use computing power to solve puzzles, helping secure a blockchain and add new transactions.
Proof of Work is a blockchain consensus mechanism in which miners compete to solve a difficult computational puzzle. The first miner to find a valid answer earns the right to add the next block of transactions to the chain and is typically rewarded with newly issued coins and transaction fees. The puzzle is hard to solve but easy for others to verify, which helps the network agree on a single history without relying on a central authority.
It matters because it makes attacks costly: changing past transactions would require redoing the work for that block and catching up with the rest of the network. Bitcoin is the best-known example of Proof of Work. A practical comparison is a lottery where each miner buys tickets with computing power; more power improves the odds, but everyone can quickly check whether the winning ticket is valid. Its main trade-off is high energy use, which is why some blockchains use alternatives such as Proof of Stake.
Other terms in Mining
Cloud Mining
Renting remote cryptocurrency mining hardware or hash power from a provider instead of running miners yourself.
GPU Mining
Using graphics cards to perform the calculations needed to secure certain proof-of-work blockchains and earn newly issued coins or fees.
Mining Rig
A specialized computer setup used to run mining software and perform the calculations needed to secure proof-of-work blockchains.
Orphan Block
A valid mined block that is not included in the main blockchain because a competing block was accepted by the network first.