{"id":1403,"date":"2023-01-13T06:17:15","date_gmt":"2023-01-13T06:17:15","guid":{"rendered":"http:\/\/localhost\/finfarm\/?page_id=1403"},"modified":"2023-01-24T17:57:24","modified_gmt":"2023-01-24T17:57:24","slug":"pow","status":"publish","type":"page","link":"http:\/\/localhost\/finfarm\/pow\/","title":{"rendered":"pow"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"1403\" class=\"elementor elementor-1403\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-49ff3e9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"49ff3e9\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9265fb3\" data-id=\"9265fb3\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ac3f112 elementor-widget elementor-widget-heading\" data-id=\"ac3f112\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.10.0 - 09-01-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">Proof of Work<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-59a3d36 elementor-widget elementor-widget-text-editor\" data-id=\"59a3d36\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.10.0 - 09-01-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><img decoding=\"async\" loading=\"lazy\" class=\" wp-image-1504 alignright\" src=\"http:\/\/localhost\/finfarm\/wp-content\/uploads\/2023\/01\/56811-running-server-1.gif\" alt=\"\" width=\"335\" height=\"335\" \/>Today, the majority of cryptocurrencies use proof-of-work consensus as their consensus mechanism. In the blockchain, the algorithm verifies the transaction and creates a new block. Cynthia Dwork and Moni Naor first proposed Proof of Work (PoW) in 1993 and Satoshi Nakamoto applied it in the Bitcoin paper in 2008. It was Markus Jakobsson and Ari Juels who coined the term &#8220;proof of work&#8221; in 1999.<\/p><p>Currently, PoW is used by cryptocurrencies such as Ethereum, Litecoin, and Bitcoin.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-05daed2 elementor-widget elementor-widget-heading\" data-id=\"05daed2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Purpose of PoW<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-412cb53 elementor-widget elementor-widget-text-editor\" data-id=\"412cb53\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>A consensus mechanism&#8217;s purpose is to bring all nodes into an agreement, that is, to trust one another, in an environment where nodes do not trust one another.<\/p><ul><li>After validating all of the transactions in the new block, it is added to the blockchain.<\/li><li>The block with the greatest block height will be added to the chain (see blockchain forks to understand how multiple chains can exist at a point in time).<\/li><li>Miners (special computers on the network) perform computation work to solve a complex mathematical problem to add the block to the network, which is why it is called Proof-of-Work.<\/li><li>The mathematical problem becomes more complex over time.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ef9fa04 elementor-widget elementor-widget-heading\" data-id=\"ef9fa04\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Features of PoW<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-354530f elementor-widget elementor-widget-text-editor\" data-id=\"354530f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>There are primarily two characteristics that have contributed to the widespread popularity of this consensus protocol:<\/p><ul><li>It is difficult to find a solution to a mathematical problem.<\/li><li>It is simple to verify the correctness of that solution.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fb50fb2 elementor-widget elementor-widget-heading\" data-id=\"fb50fb2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Challenges with PoW<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ead8aad elementor-widget elementor-widget-text-editor\" data-id=\"ead8aad\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The Proof-of-Work consensus mechanism has the following flaws:<\/p><ul><li style=\"list-style-type: none;\"><ul><li><strong>The 51% risk:<\/strong>If a controlling entity owns 51% or more of the network&#8217;s nodes, the entity can corrupt the blockchain by gaining control of the majority of the network.<\/li><li><strong>Time-consuming:<\/strong>Miners must examine a large number of nonce values to find the correct solution to the puzzle that must be solved to mine the block, which is a time-consuming process.<\/li><li><strong>Consumption of resources:<\/strong>Miners use a lot of computing power to solve a difficult mathematical puzzle. It results in the waste of valuable resources (money, energy, space, hardware). By the end of 2018, it is expected that 0.3% of the world&#8217;s electricity will be spent on transaction verification.<\/li><li><strong>Transaction is not instantaneous:<\/strong>Transaction confirmation takes 10-60 minutes. As a result, it is not a real-time transaction because it takes time to mine the transaction and add it to the blockchain, thereby committing the transaction.<img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-1571 aligncenter\" src=\"http:\/\/localhost\/finfarm\/wp-content\/uploads\/2023\/01\/Mehak_Agarwal__2_-removebg-preview-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"http:\/\/localhost\/finfarm\/wp-content\/uploads\/2023\/01\/Mehak_Agarwal__2_-removebg-preview-300x300.png 300w, http:\/\/localhost\/finfarm\/wp-content\/uploads\/2023\/01\/Mehak_Agarwal__2_-removebg-preview-150x150.png 150w, http:\/\/localhost\/finfarm\/wp-content\/uploads\/2023\/01\/Mehak_Agarwal__2_-removebg-preview.png 500w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/li><\/ul><\/li><\/ul><p style=\"font-size: 16px;\">\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Proof of Work Today, the majority of cryptocurrencies use proof-of-work consensus as their consensus mechanism. In the blockchain, the algorithm verifies the transaction and creates a new block. Cynthia Dwork and Moni Naor first proposed Proof of Work (PoW) in 1993 and Satoshi Nakamoto applied it in the Bitcoin paper in 2008. It was Markus &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"http:\/\/localhost\/finfarm\/pow\/\"> <span class=\"screen-reader-text\">pow<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"_links":{"self":[{"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/pages\/1403"}],"collection":[{"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/comments?post=1403"}],"version-history":[{"count":14,"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/pages\/1403\/revisions"}],"predecessor-version":[{"id":1574,"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/pages\/1403\/revisions\/1574"}],"wp:attachment":[{"href":"http:\/\/localhost\/finfarm\/wp-json\/wp\/v2\/media?parent=1403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}