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Have you been wondering what proof of work is?
When you pay your $5 for coffee at Starbucks, it’s impossible to use the same $5 that you’ve just given out for a snack or something else. But with digital currency, there’s a possibility of duplicating currency and using it more than once. Virtual currency is technically just data that can be copied over and over again. So, what stops you from spending the same coins over and over?
In 2009, Satoshi Nakamoto introduced Proof of work through the bitcoin network as a solution to the ‘double spending’ problem. Proof of work is the leading consensus model in the cryptocurrency community. Before diving more into proof of work, let’s understand what a consensus model is and why it’s important.
Why do we need a consensus model?
Traditionally, in a hospital there’s a person responsible for keeping records, updating, deleting and adding patient information to a database. The hospital trusts this person to manage accurate information in the entire database. So, if for instance they were to say that…
