Proof of Work (PoW)

What does Proof of Work (PoW) means?

It’s the short form of Proof of Work—An expensive validation process on the blockchain where miners verify new transactions by solving hash puzzles. This mechanism secures the blockchain by preventing malicious use of high computing power and ensures the creation of new blocks after transaction validation. The PoW mechanism, however, revolves around the evidence of work, which prevents double spending of coins. However, it rewards the miners as incentives for their work.

Examples

Examples of blockchains that use PoW include:

Bitcoin
Ethereum: But it is set to merge with Beacon, a PoS blockchain, according to a report on dailyfx.

Random Slangs

Open editions

These are NFTs offering an unlimited number of mints within a specified time frame. As opposed to limited editions, collectors can mint as much as

Mining

It’s the cryptocurrency generation process. And it involves adding verified blocks to the blockchain to maintain its integrity through a proof of work (PoW) process.

Gas war

Gas war results from conflicting transactions on the blockchain, where the volume of NFTs available are lesser than the number of wallet addresses minting the

Fungibility

As opposed to non-fungibility, fungibility means replaceability. It describes the ability of an item to be tradable or exchangeable for other commodities. For instance, cryptocurrencies

Multisig

A shorthand for “multi-signature.” It refers to a wallet address that requires multiple signatories (private keys) to transfer funds successfully. This further strengthens wallet security,