POA |POB |POC |POD |POE |POI |POP |POS |POW |POST |dPoW |dPoS : Explained

Welcome to another article from these series called “Crypto Jargon”. This article is about the following types of digital proofs in relation to blockchain technology and cryptocurrencies.

I will begin with the most commonly used ones, so I will not follow alphabetical order.

So, the first one here should be POW which stands for Proof-of-Work and it’s related to mining. If you need more clarity about what the Mining process is and how it works, check out the previous episode where I explain it in more detail.

Proof-of-Work is a consensus algorithm, pioneered by Satoshi Nakamoto (the creator of Bitcoin), that ties mining capability to computational power. Blocks must be hashed, which in itself is not a difficult computational process, but an additional variable is added to the hashing process to make it harder. When a block is successfully hashed, the hashing must have taken some time and computational effort. Thus, a hashed block is considered to be the Proof of work.

The rewards for this type of mining are straightforward: miners receive coins and transaction fee rewards in direct correlation to the actual mining work they complete. This type of mining is very high energy-consuming too and it’s often criticized as one of the main downsides to…