Proof of Work
Bitcoin's consensus mechanism: miners compete to solve complex mathematical problems.
Definition
Proof of Work (PoW) is Bitcoin's consensus algorithm. To add a block to the chain, a miner must find a number (nonce) that, combined with the block's data, produces a hash with a certain number of leading zeros. This process requires enormous computing power (work) and is the mechanism that makes Bitcoin immutable and censorship-resistant. There is no shortcut to solving the problem: billions of combinations must be tried. The energy expended is the real cost that protects the network.
Related Terms
Mentioned in
Explore more on SatsIntel
From the concept to the real dataHistory of Bitcoin
The milestones that shaped the protocol since 2009: whitepaper, halvings, SegWit, Taproot, ETFs.
Ver sección →Top 100 digital assets
Bitcoin, ethereum, stablecoins and the rest. Live prices and market metrics.
Ver sección →Treasuries directory
Companies applying this concept on their balance sheets. Holdings, mNAV and live ranking.
Ver sección →More glossary terms
60 definitions from the corporate Bitcoin ecosystem: protocol, metrics, regulation.
Ver sección →Read this term in Spanish: versión en español →
Corporate Bitcoin, explained every week
Definitions, data and analysis on treasuries, ETFs and preferreds in your inbox. No spam.