## What is Proof of Work (Cryptocurrency Explanation) ### What is Proof of Work? (Cryptocurrency Explanation) ![rw-book-cover](https://readwise-assets.s3.amazonaws.com/static/images/article4.6bc1851654a0.png) #### Metadata * Author: [[Clarity Notes]] * Full Title: What is Proof of Work? (Cryptocurrency Explanation) * Category: #articles * URL: <https://www.youtube.com/watch?v=XLcWy1uV8YM> #### Highlights * Why is it still a leading model? * A medical report card, a single person is given the responsibility to update the whole database. * Technically they have to update the account, not so efficient. * On blockchain, it is self-governing. 1000s of users participating around to make this happen. * There is a consensus on the network so that everyone is on the same page. * Everyone is on the same page, by means of a distributed ledger (everyone has the same record) Proof of work: consensus mechanism for bitcoin. Significant effort. To designed to solve the problem of double-spending. It's easier on a centralised system where it is easier to check the records. Double spending makes it duplicate coins and reduce the value of the coin. PoW: Decentralised ledger is tasked with storing information permanently and safely. # What is Proof of Work? (Cryptocurrency Explanation) ![rw-book-cover](https://readwise-assets.s3.amazonaws.com/static/images/article4.6bc1851654a0.png) ## Metadata - Author: [[Clarity notes]] - Full Title: What is Proof of Work? (Cryptocurrency Explanation) - Category: #articles - URL: https://www.youtube.com/watch?v=XLcWy1uV8YM ## Highlights - Why is it still a leading model? - A medical report card, a single person is given the responsibility to update the whole database. - Technically they have to update the account, not so efficient. - On blockchain, it is self-governing. 1000s of users participating around to make this happen. - There is a consensus on the network so that everyone is on the same page. - Everyone is on the same page, by means of a distributed ledger (everyone has the same record) Proof of work: consensus mechanism for bitcoin. Significant effort. To designed to solve the problem of double-spending. It's easier on a centralised system where it is easier to check the records. Double spending makes it duplicate coins and reduce the value of the coin. PoW: Decentralised ledger is tasked with storing information permanently and safely.