Proof of Work refers to a consensus algorithm in blockchain technology. Miners compete to solve complex mathematical problems which are 'proofs' that validate new blocks.
The first miner to solve the puzzle broadcasts the solution, which is verified by other nodes. Successful verification results in the addition of a new block to the blockchain, accompanied by a reward to the miner.
Block rewards are given as incentives to miners to keep validating blocks. This is because miners spend large computational resources to solve those mathematical puzzles.
Examples of blockchains that use the consensus mechanism PoW:
- Bitcoin (BTC)
- Litecoin(LTC)
- Bitcoin Cash (BCH)
- Dogecoin (DOGE)