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
Fear of Missing Out (FOMO)
Refers to the feeling of apprehension for missing out on a potentially profitable investment opportunity and regretting it later.
Generally an expression describing investors' fear of missing out the good timing of buying cryptocurrencies that could eventually be profitable
Proof-of-Burn (PoB)
A consensus algorthm that assigns block validation queue based on the coins/token burned by the validator.
Tangle
The name for IOTA's Directed acylic graph (DAG) based transaction settlement layer.
Staking
The state of locking-in significant amount of token to participate as a validator of a Proof-of-Stake network.
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