Definition of Proof of Work (PoW)

A consensus algorithm used by blockchains like Ethereum or Bitcoin. More specifically, a proof of work is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof of work is generated.

⟵ Go to all terms