⚒️Proof of Work (PoW): The Traditional Model
Proof of Work (PoW) is the original consensus mechanism used by early blockchains like Bitcoin and Ethereum (prior to Ethereum's switch to PoS). In PoW, miners compete to solve complex cryptographic puzzles, with the first miner to solve the puzzle earning the right to add the next block to the blockchain and receive the block reward. This process, known as mining, requires significant computational power and energy, making PoW blockchains notoriously energy intensive.
Limitations of PoW:
High Energy Consumption: PoW mining consumes massive amounts of electricity. For example,
Bitcoin’s mining network alone consumes more energy than some small countries, raising
environmental concerns about its sustainability.
Centralization Risk: Mining power tends to centralize in regions with cheaper electricity, leading
to concerns that a few mining entities control a disproportionate amount of the network’s hashing
power.
Barrier to Entry: PoW mining requires expensive, specialized hardware (such as ASICs), making it
difficult for everyday users to participate. This leads to further centralization of mining power and
limits the inclusivity of the network.
Scalability Issues: PoW blockchains struggle to scale due to the time and energy required to
process each transaction. As networks grow, congestion can lead to slower transaction times and
higher fees.
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