Proof-of-work system - Definition from the Hotspot Shield Encyclopedia

The Proof of Work system is a main system that is used in the mining process of digital currencies.

The proof of work scheme involves solving computational puzzles or pricing functions to gain a reward and to prove that the workd has been completed. There are two different variations of the proof of work protocol which are the Challenge-response (the provider picks a challenge, and the responder has to match that challenge, once the response if verified, the reward is given), and the Solution-verification method (the responder choose the problem and solves it, and the provider has to verify the problem chosen, and the solution before giving a reward). Many cryptocurrencies use the proof of work method with Bitcoin being the first and main adapter of this technology.

Download Our Free VPN

Download Hotspot Shield. It’s Free!

Join over 500 million users already enjoying absolute Internet Freedom around the world by downloading Hotspot Shield VPN.

We don't store or share your IP address