Proof-of-Work (PoW)

Proof-of-Work (PoW) is a system used to confirm the integrity of data on decentralized networks like Bitcoin. In this process, miners must find a special hash—a long number generated by running the block’s data through a cryptographic function—that is below a certain threshold to validate a new block. Achieving this requires miners to perform a huge number of calculations, consuming significant energy and resources. This computational effort discourages dishonest behavior and helps protect the network from attacks.

The difficulty of finding a valid hash isn’t fixed; it changes automatically based on how many miners are participating. If more miners join and blocks are found too quickly, the difficulty increases by lowering the acceptable hash target. If miners drop out and blocks take too long, the target rises, making it easier. This self-adjusting mechanism ensures that, on average, a new block is added to the Bitcoin blockchain every 10 minutes, helping maintain consistency and trust across the decentralized system.