How Does “Proof-of-Work” Secure a Blockchain?
Proof-of-Work (PoW) secures a blockchain by requiring miners to expend significant computational effort (hash power) to solve a complex mathematical problem to create a new block. This effort makes it prohibitively expensive and energy-intensive for a malicious actor to gain control of the network (the 51% attack).
The longest chain of blocks is accepted as the valid history.
Glossar
Secure
Framework ⎊ Within cryptocurrency, options trading, and financial derivatives, a secure framework prioritizes the integrity and resilience of underlying systems against adversarial attacks and operational failures.
Computational Effort
Calculation ⎊ The computational effort inherent in financial modeling, particularly within cryptocurrency derivatives, options trading, and related instruments, represents the resources ⎊ time, processing power, and specialized expertise ⎊ required to generate accurate and timely results.
Malicious Actor
Exploit ⎊ The term "Malicious Actor" within cryptocurrency, options trading, and financial derivatives denotes an individual, group, or automated system leveraging vulnerabilities or asymmetries within market structures, protocols, or participant behavior to generate illicit profit or inflict detrimental consequences.