PoW
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Proof-of-work system - Wikipedia
Meaning of proof-of-work
A method of deterring DoS attacks and spam by requiring users to perform some work during processing, with the condition that the work is "something that humans can do but machines can easily verify".
This idea is known as a CPU cost function, a client puzzle, a computational puzzle, or a CPU price function.
Can blockchain solve the problem of massive energy consumption?: The potential of Ethereum and "PoS" | WIRED.jp
Bitcoin is designed to make the cost of participating in the network high. Computers that hold the ledger (also known as "mining nodes") are required to constantly solve complex mathematical puzzles and receive Bitcoin as a reward.
And when solving these problems, these (quite expensive) computers consume a lot of energy. It can be said that this is a system that is intended to thwart the desire to tamper with the Bitcoin ledger and instead encourage cooperation.
However, according to the Cambridge Alternative Finance Center (CCAF) at the University of Cambridge, this incentive system called "proof-of-work (PoW)" based on electricity consumption is causing Bitcoin mining to consume 133.65 terawatt-hours per year.
This is more than the annual electricity consumption of countries such as Sweden and Ukraine. According to a report released by the University of Cambridge in 2020, only 39% of this is accounted for by renewable energy. Michael Rauchs, a researcher at CCAF, says that the success of Bitcoin has established PoW as the "industry standard" for cryptocurrencies.
Answer to criticism of PoW's environmental impact
One of the systems is like charging a low fee for sending emails to prevent spam.
A system where rewards are given for holding and depositing tokens with PoW
/emoji/twitter.icon I know that Proof of Stake can receive rewards by holding and depositing tokens, but I can't find out why the operator gives rewards and where the funding comes from even if I search it up online. Similarly to Result Oracle, which gives Exit to OSS in a capitalist way, dissolves the corporation, I don't really understand previous companies, interviews and appearances related to oneself.icon.
/emoji/twitter.icon In a blockchain network without a central administrator, a mechanism is needed for distributed nodes to reach consensus on the state of the system. This mechanism is determined by the protocol in Proof of Work and Proof of Stake rather than the operator giving rewards. The reward for block generation is determined by the protocol. https://t.co/k0TSltRClG
/emoji/twitter.icon Thank you! It seems that there are also generating rewards like Bitcoin even in PoS. So, that means they're just issuing new coins for funding, right?