Proof-of-work

Let's start with the best-known method of reaching consensus, referred to as the PoW algorithm or scheme. This scheme is used by blockchains built upon the Bitcoin core code. The PoW scheme is the one used in this chapter to explain the core concepts of the blockchain. It uses a system of hash functions to create conditions under which a single participant (individual, organization, or computer) is allowed to submit its conclusions about the broadcast transactions. Those conclusions, in the form of a new block, are broadcast to all other participants who then can independently verify them. If a participant submits false conclusions, the other participants will fail to compute by the rules of the hash function and the conclusions ...

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