Definition
A consensus mechanism where miners compete to solve complex mathematical puzzles to validate transactions and add new blocks to the blockchain. The first miner to solve the puzzle earns the reward.
Why It Matters
Proof of Work is the original consensus mechanism used by Bitcoin and remains one of the most battle-tested methods for securing a decentralized network.
Example
Bitcoin miners around the world compete to solve a cryptographic puzzle approximately every 10 minutes, with the winner adding the next block and earning the block reward.
Related Terms
Mining
ASIC
Hash Rate
Consensus