Proof-Of-Work Is Essential For Bitcoin – Bitcoin Magazine

This is opinion editor Pierre Gildenhuys, co-founder of a Hong Kong-based social media technology startup.

Proof of work is the consensus mechanism used by the Bitcoin protocol. At a basic level, this means that work must be done to prove the validity of transactions that have taken place on the network.

Proof-of-work functions with specialized “computers” known as application-specific integrated circuits (ASICs) that input transaction data, information from the previous block listener, and a one-off (random number) to estimate the result of hash functions. Hash functions are one-way mathematical equations, so it’s impossible to infer from the obvious input, except for quick guesses, as is the case with these ASICs. “Miners” are the people who run these machines and they want to increase the number of hashes (or guesses) their machines can produce per second, and they want to find the cheapest and most reliable source of energy to turn this into mining. it is profitable for them to earn income to cover the cost of their cars and cover their other expenses. Nevertheless, Bitcoin is an incredibly competitive industry as a result of difficulty regulation: depending on how many hashes are mined per second on the network, the complexity and difficulty of the hash function will increase or decrease accordingly, so that on average 10 minutes for each new block found in the Global network.

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