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Proof of Work

Technical · Networks & Protocol Infrastructure · Last reviewed: September 2026

Proof of work is a family of blockchain consensus mechanisms in which participants expend computational effort to compete for the right to propose blocks and extend the accepted transaction history.

Explanation

In proof-of-work systems such as Bitcoin, miners repeatedly perform hash computations until a valid result satisfies the protocol's difficulty target. Other nodes verify the result cheaply and apply consensus rules to determine the accepted chain. Security relies in part on the cost of acquiring enough computational power to rewrite or disrupt the ledger. The model can consume substantial energy because block production requires continuous computation.

Boundaries

Proof of work uses computational work as a central security resource. Proof of stake uses committed economic stake and protocol penalties as central elements of consensus.

Why it matters

Consensus choice determines how transactions are ordered, how reversal risk declines, and what resources protect the ledger used for digital-asset transfers.

Example

A proof-of-work miner can include a stablecoin-related transaction on a compatible network after producing a valid block under that network's consensus rules.

Related terms

Sources

  1. Joseph Bonneau, Andrew Miller, Jeremy Clark, Arvind Narayanan, Joshua A. Kroll, and Edward W. Felten. SoK: Research Perspectives and Challenges for Bitcoin and Cryptocurrencies. IEEE, 2015 IEEE Symposium on Security and Privacy, pp. 104-121, 2015. doi:10.1109/SP.2015.14 Peer-reviewed research
  2. Shehar Bano et al.. SoK: Consensus in the Age of Blockchains. Association for Computing Machinery, Proceedings of the 1st ACM Conference on Advances in Financial Technologies, pp. 183-198, 2019. doi:10.1145/3318041.3355458 Peer-reviewed research
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