What Is a ‘Proof-of-Work’ Consensus Mechanism?

Proof-of-Work (PoW) is a consensus algorithm that requires network participants (miners) to expend significant computational effort to solve a difficult, but verifiable, mathematical puzzle. This work, which is the process of finding a valid block hash, secures the network by making it economically infeasible for an attacker to gain control and tamper with the ledger.

The miner who finds the solution first is rewarded with new coins and transaction fees.