Chapter 2
Exploring the Different Forms of Mining
IN THIS CHAPTER
Understanding consensus algorithms
Finding out why proof of work is the most trusted form
Surveying cryptocurrencies using proof of work
Working with proof of stake and proof of work together
In this chapter, you find out about the different consensus algorithms used in cryptocurrency. Blockchain technology distributes data across hundreds or even thousands of computers. The challenge is to ensure that each copy of the data, on all those different computers, is correct. Different mathematical algorithms can be used to create consensus — to ensure that everyone working with any particular cryptocurrency agrees on what data should be included in the blockchain and what version of the blockchain is correct.
We explain various aspects of different consensus systems: proof of work, proof of stake, hybrid proof of stake/proof of work, and others.
Proof-of-Work Algorithms
Consensus is the process of ensuring that everyone’s copy of the transaction data matches — that every copy of the blockchain contains the same data. ...
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