What is Proof of Work? (Cryptocurrency Explanation)

What is Proof of Work in cryptocurrencies? Proof of Work can be really confusing, but it's just a way for a bunch of people to compete in a blockchain. The winner gets a mining reward and to add the next block. Proof of Work is the first and most commonly used consensus model - its used by Bitcoin!

Learn more about PoS (Proof of Stake):

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[ReverseJP]

Nice content! My Left ear are happy to learn this much of crypto in so high quality video.

[SidTheBot]

My left ear is full of 'Proof of Work'

[liquidsnakechaos]

Why is your audio only coming from left?

[gracewilliams]

Thank you, have been watching your channel for couple of weeks ago and it's really make sense and it really help me through..

[nimietyskookumlucre]

champs study the basics tirelessly...thanks

[marystarliper]

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[tempdeltavalue]

video doesn't give any answers what is proof of work and how It works.

[SHARMATUSHAR_]

I wasted 20 minutes resetting my headphones and reading forums thinking there was an issue.

[qayotee]

You need to dig deeper regarding the “drawbacks” like more efficient asics, tapping into unused energy sources, grid stabilization, faulty energy consumption reports etc.

And regarding scalability, please look at lightning network which solves the scalability. Bitcoin is built in layers exactly like the internet is.

[fatemehrajabi]

I love your work. Thanks a lot. everything is explained in the simplest way possible.

[fasteddie]

Excellent, , , wished you'll sloooowwww down a bit... can you do that.... thanks !

[imyourteacher]

It would be cool to get your shorted notes or transcript pdf for each video explainer.

[Jam-htky]

love your videos. Thank you for producing such a high quality videos and still keeping it somehow simple and easily understandable. I read the whole Ethereum documentation and your videos are still very helpful watch

[KeyserTheRedBeard]

cool content Whiteboard Crypto. I broke that thumbs up on your video. Maintain up the very good work.

[moonman]

How is it decided which block a transaction gets added to?

[andrejgono]

PoW has a penalty too. The burned energy is the penalty, so you won't cheat, because you will burn a lot of energy/money and you won't get nothing. Even if you could mine new block with fake transactions, other nodes will automatically ignore it. You tried to cheat, burned a lot of money to mine new block and get nothing. PoW is great and strong consensus model and PoS is not better.

[korinzu]

Good video but the 3 problems are trash and you could’ve explained how they are being solved on the bitcoin blockchain.
1. Energy consumption is required to create value - how much energy do you think they use when they print money? Also as you stated the high energy consumption is pushing miners toward renewables, so you could say that bitcoin is actually pushing the world towards renewables.
2. The scalability is solved with Lightning on the second layer of bitcoin, the same as video on top of the internet base layer protocol. The base protocol for the internet tcpip is slow and clunky like the base layer of bitcoin but with a layer 2 you can add features such as high speed video streaming or in the case of bitcoin, instant, free payments.
3. Why do miners need to be punished when the nodes control the network, not the miners. How would miners even do have malice intent? Like you said they get disregarded by other miners and nodes if they do anything or go offline. Even after the block size war and the China mining ban, nothing happened. I think your 3rd point is completely random and doesn’t make any sense. Other than that, the content was great and I enjoyed your explanation of proof of work, which is far superior to proof of stake. Proof of stake means only rich people can run nodes because there is such high computing power needed to maintain the ledger, thus, centralising the consensus. Proof of work and a slow base layer means any man and his dog can run a full node and validate transactions, creating far better decentralisation.

[arhamkhawar]

My left ear fully understood the proof of work

[rj-yeil]

Hi I love all your vids but wanted to know: Are some videos deleted? I can’t find some of the videos you reference throughout the channel, but you’ve been teaching me a lot so I want to watch them all!

[popelee]

Amazing Video, keep it up, this channel is going places!