Proof of Work

Proof of Work is a system that secures cryptocurrency networks by requiring computers to solve difficult math puzzles before adding new transactions to the blockchain (the digital ledger that records all trades). The first computer to solve the puzzle gets to add the next batch of transactions and earns new cryptocurrency as a reward. You'll hear about this mainly with Bitcoin, the most famous cryptocurrency using this method. It matters because solving these puzzles requires real computing power and electricity, which makes it extremely expensive and difficult for bad actors to fake transactions or take over the network. Think of it like a security guard who only lets you into the club after you've proven you solved a hard puzzle—it keeps the system honest.