Proof of Work
Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ethereum Classis, Monero, Dash, ZCash, Decred, Digibyte
Why should you invest in this Basket?
What are Proof-of-Work coins?
Proof-of-Work coins are cryptocurrencies that are secured through mining. The most famous Proof-of-Work cryptocurrency is Bitcoin. Miners deploy their computer hardware to solve computationally-intensive mathematical problems and ensure that all transactions are valid. Miners are compensated for their work with the cryptocurrency they are mining – for example, Bitcoin miners earn BTC.
Why do some cryptocurrencies use Proof-of-Work?
Since Bitcoin’s launch in 2009, Proof-of-Work designs have demonstrated that they are a viable method of securing cryptocurrency networks. Thanks to the popularity of Proof-of-Work cryptocurrencies, the cryptocurrency mining community is very strong and offers plenty of resources available to anyone who wants to get started with cryptocurrency mining.
What are the downsides of Proof-Of-Work?
Proof-of-Work cryptocurrencies tend to have limited scalability, and can only process a limited number of transactions per second. In addition, Proof-of-Work cryptocurrencies that aren’t backed by a lot of computing power can be vulnerable to 51% attacks, where one entity controls more than 50% of the network’s hashrate. This isn’t a major issue for Bitcoin or Ethereum, but can be devastating for smaller coins.
20 June, 2021
20 July 2021
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