Proof of Work (PoW)
By CoinGecko | Updated on Mar 03, 2020
An algorithm that rewards the first person that solves a computational problem (i.e. mining) to achieve distributed consensus. Miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain. It prevents spam and cyber attacks such as DDoS as it requires work (i.e. processing time) from the service requester.
Related Terms
BitLicense
Refers to the business license issued by the New York State Department of Financial Services (NYSDFS) to companies dealing with Cryptocurrencies (subject to certain exceptions) in New York.
Leverage
It is an investment strategy to gain potential return of the investment by borrowing the money
Hashgraph
Hashgraph is a distributed ledger system that has been compared to the blockchain idea as a continuation or successor.
Dump
A common term used to describe downward market movement, or to describe the action of selling an individuals holdings.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.