List of All Proof of Work (POW) Coins
September 2023

What is Proof of Work

POW (Proof of Work) is a consensus mechanism designed by Satoshi Nakamoto for Bitcoin. Proof of Work is a protocol created mainly for blocking attempts and spam aimed at making it difficult for any system to work.

The Bitcoin network relies heavily on Proof of Work. If it were not for such an energy-intensive process, it would be easy for bad actors to attack the network and “double-spend” Bitcoin. In order for blockchain networks to function correctly, they need to design their networks accordingly by adopting certain consensus algorithms. Here POW is one of these algorithms.

In fact, POW is known as the first algorithm released. As it turns out, the original cryptocurrency Bitcoin (BTC) uses the POW algorithm. The POW algorithm can also be defined as a mechanism that works to ensure that transactions that occur on the network do not repeat, that is, they do not occur more than once. We see that cryptocurrencies with large networks such as BTC usually adopt the Proof of Work algorithm. Consensus or consensus mechanisms ensure that distributed ledgers in blockchain networks have a more secure structure.

Proof of Work and Computing power requirement

Proof of work requires an expensive computer calculation, or mining, in other terms. To produce trustless transactions on the blockchain, mining is required. The transactions are first assembled and packed together into a block. Then, within each block, miners verify transactions to see if they are authentic. To advance, miners must first solve a mathematical riddle known as a proof of work problem. Every miner must compete. Then, for each block problem, the first miner who solves it gets paid. Finally, the blockchain is used to keep the validated transactions. Proof of Work is the dominant consensus model used in Bitcoin, the largest cryptocurrency, as well as other cryptocurrencies such as Litecoin, Dogecoin, Bitcoin Cash, and Monero. Bitcoin was the first and most widely used Proof-of-Work cryptocurrency. It is the coin that introduced the Proof-of-Work concept to the cryptocurrency industry. Furthermore, since its inception, Ethereum has relied on POW consensus.

Advantages of Proof of Work

The main advantage of Proof of Work is security at first. It's one of the safest ways to reach a consensus. Also, POW provides a decentralized approach for transaction verification. In addition to these, it allows miners to earn cryptocurrency in exchange for their efforts. The possibility of mining is determined by the amount of computing effort completed.

Disadvantages of Proof of Work

The main disadvantage of Bitcoin's Proof of Work model is that it uses a lot of energy for mining. Statements about this situation suggest that the entire Bitcoin network has a carbon footprint comparable to that of the country of Morocco. Another drawback is that mining for cryptocurrencies such as Ethereum has ignited a tremendous demand for powerful PC graphics cards (or GPUs), causing widespread device shortages and price hikes. This has led to the fact that manufacturers have weakened the mining capabilities of graphics cards to make them less desirable for miners.

Mining a cryptocurrency is one of the most well-known examples of POW. Now, let's take a look at some of the most well-known Proof of Work cryptocurrencies. If we start with Bitcoin, since its inception in 2009, it has been the first cryptocurrency. It was the first cryptocurrency to establish the notion of proof of work, which would later be adopted by many other coins. Also, Litecoin was one of the first altcoins or Bitcoin alternatives. It was launched in 2011 and is based on Bitcoin technology. It promises faster transaction speeds. Dogecoin is a cryptocurrency that was founded in 2013 and is based on the Doge meme. Despite the fact that it began as a joke, it grew a loyal following.