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In this article, I will explain to you the main differences between Proof of Work vs Proof of Stake and I will provide you a definition of mining, or the process new digital currencies are released through the network. This article wants to be a basic guide to understanding the problem above. What is the Proof of work? First of all, let’s start with basic definitions. Markus Jakobsson and Ari Juels in a document published in 1999. They keep their own private register which stores transactions history and balances of each account.
100, the trusted third-party service would debit Alice’s account and credit Bob’s one, so they both have to trust this third-party is to going do the right thing. To create new digital currencies by rewarding miners for performing the previous task. The work, in fact, must be moderately hard on the requester side but easy to check for the network. This idea is also known as a CPU cost function, client puzzle, computational puzzle or CPU pricing function. All the network miners compete to be the first to find a solution for the mathematical problem that concerns the candidate block, a problem that cannot be solved in other ways than through brute force so that essentially requires a huge number of attempts.