When the altcoin market started in 2011, the majority of newly launched digital currencies had the same consensus mechanism that bitcoin uses to secure its network. Today, there are still a number of leading digital currencies that use proof of work (PoW) despite the many innovations in the consensus algorithms space.
In this guide, you will learn what proof of work is and find a list of the best proof of work coins for investment currently.
What Is Proof of Work?
Proof of work (PoW) is a consensus mechanism that is used by decentralized digital currency networks such as bitcoin to ensure that transactions are confirmed and processed in a trustless manner.
In a proof of work digital currency network, miners solve complex mathematical puzzles that are difficult to compute and require substantial resources to secure the network by ensuring that all transactions are processed correctly. In exchange for their service, miners receive newly mined coins and transaction fees as rewards.
Best Proof of Work (PoW) Coins
To compile a list of the most promising proof of work coins, we looked at criteria such as market capitalization, trading volumes, and community size.
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