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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.

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Related Terms

Stale Block
Double mined blocks that are not included in the blockchain.
Goblin Town
A term used to describe the market's persistent downtrend, synonymous with "bear market".
Crypto Bubble
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Price rally that is short lived after a prolonged decline. Price charts will show a recovery in anticipation of a market turnaround only to decline further.
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