Proof-of-Work and Proof-of-Stake: what is it in simple terms?

 Proof-of-Work and Proof-of-Stake: what is it in simple terms? The key feature of this mathematical problem is asymmetry: it should be moderately difficult for the miner, but easy enough for the network as a whole. This is achieved through cryptography. Every miner in the network tries to solve the problem first; at the same time, it can actually be found only by direct enumeration, so many attempts are required for a successful solution. An example, perhaps a little fantastic, but illustrative. Imagine being handed a keyboard with several million numbered keys. You are looking for exactly the key that you need to complete the task correctly, but you do not know its number, so you sort through everything. There is a crowd around you, also looking for the right key. Suddenly you found the right key, tell everyone “guys, I found the key, its number is 22 875”. Everyone around starts checking key number 22875, and oh yes, it is. The one who finds the key first wins a prize. Each is th...

What is Proof of Work (PoW)?

 What is Proof of Work (PoW)?

Back in 1993, two IBM analysts Cynthia Wark and Moni Naor published a scientific article in which they stated that it would be possible to provide access to certain network resources only if the most complex tasks were performed.

In May 1996, British cryptographer and developer Adam Back was able to implement this concept into a technology called Hashcash, used in online systems to protect against spam attacks. Then he did not even suspect that he laid the foundation for the creation of digital currencies.

In 1999, the term PoW was designated as a unique principle for protecting network systems, with which you can effectively protect yourself from powerful dos-attacks.

In 2004, developer Satoshi Nakamoto integrated Hashcash into Bitcoin, which became the first digital currency to use the concept of PoW.