All concepts

Concept

Consensus

Proof of Work

First appeared Mar 1997

Why it matters

Proof of work makes rewriting history costly in real-world energy, which is what lets a decentralized network agree on one transaction order without trusting anyone.

What it is

A scheme in which producing a valid block requires finding an input whose hash falls below a target — work that is expensive to perform but trivial to verify. Bitcoin adapts Hashcash to chain blocks together.

Sources