Proof of Work (PoW) is the core algorithm that ensures transaction security in blockchain networks. Its primary function is to verify the authenticity of each transaction and permanently record valid transactions in the distributed ledger, preventing tampering and fraud.

1. Core Operating Logic of PoW

Every transaction on the blockchain must undergo verification to be confirmed as valid. This verification task is performed by a specific role in the network—"miners":

  • Miners must invest significant computational power to perform complex calculations, with the core task being to solve a specific mathematical puzzle. This puzzle has no shortcuts and can only be cracked through brute-force trial and error, thereby demonstrating the miner's "work effort".

  • The miner who first successfully solves the puzzle receives dual cryptocurrency rewards: first, the "transaction fees" generated from each transaction (to cover processing costs), and second, the network's preset "block reward" (to incentivize miners to participate in maintenance).

  • The miner's work results are cross-verified by other nodes across the network. Once confirmed accurate, the transaction and related data are packaged into a new block and permanently recorded in the digital ledger, becoming an inseparable part of the blockchain.

In simple terms, the essence of Proof of Work is to use "computational power investment" as the foundation of trust—miners prove their contributions by completing computational tasks to earn rewards, while the collective verification by network nodes ensures transaction authenticity and network security.

2. Key Concept Supplements

  • Digital Ledger: The core carrier of the blockchain, specifically designed to record all historical transaction details of digital currencies. It features public transparency and tamper-resistance, with every transaction traceable.

  • Nodes: Various computer devices connected to the digital currency network (including ordinary computers, servers, etc.). The core responsibility of nodes is to verify the transaction data packaged by miners while collectively maintaining the security and data integrity of the entire blockchain network, preventing any single node from cheating.