Proof of work or PoW, is a form of mining which is the computer process of recording and verifying information on the digital record known as the blockchain.
Imagine the blockchain as a digital book of records. Every page in that book can only store X amount of information. So we create new pages to store more information. Those pages are blocks in the blockchain. And creating new blocks, recording and verifying information is all a part of mining.
With proof of work, computers compete to solve a tough math problem. The first computer that does this is allowed to create new blocks and record information. Because mining requires computer power, people do this work in return for money. The first computer to solve this problem can record information earning them a reward in brand new digital money plus fees paid for each transaction.
See mining for more information.« Back to Glossary Index