Proof-of-Work (PoW) is a consensus algorithm used in blockchain networks to validate and confirm transactions. Here's how it works:
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Transactions are bundled together into blocks.
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Miners compete to solve a complex mathematical puzzle based on the data in the block.
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The first miner to solve the puzzle broadcasts the solution to the network.
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Other miners verify the solution, and if correct, the block is added to the blockchain.
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The miner who solved the puzzle is rewarded with newly minted cryptocurrency and transaction fees.
This process requires miners to invest computational power and electricity to find the solution, which makes it difficult and time-consuming. This difficulty ensures that blocks are added to the blockchain at a consistent rate and prevents fraud and manipulation.
