How Does PoW Prevent Sybil Attacks?
A Sybil attack is where an attacker creates many false identities to gain disproportionate influence. PoW prevents this by requiring a significant computational and energy cost for each 'identity' (miner) to participate in block creation.
The economic barrier to entry makes creating numerous fake mining identities prohibitively expensive.
Glossar
Sybil Attack
Architecture ⎊ The Sybil attack, within cryptocurrency, options trading, and financial derivatives, exploits the inherent design vulnerabilities of distributed systems reliant on identity-based consensus.
Economic Barrier to Entry
Capital ⎊ Economic barriers to entry within cryptocurrency, options trading, and financial derivatives frequently manifest as substantial capital requirements, exceeding the reach of many potential participants.
False Identities
Anonymity ⎊ The concept of false identities in cryptocurrency relates to the pseudonymous nature of blockchain transactions, where participants operate using public addresses rather than verified personal information.
Mining Identities
Pseudonymity ⎊ Mining identities are fundamentally pseudonymous, represented only by the cryptocurrency address receiving the block reward.