Evaluation of Proof-of-Work Consensus Algorithm for Blockchain Networks

Abstract

Blockchain is an immutable database which is decentralized and distributed. This blockchain is shared by all the nodes in the network and every node has the same state. The transactions in this open distributed ledger are verified and confirmed with the help of consensus algorithms. The transactions, once executed and entered, can never be changed or erased. Bitcoin, the first usecase of blockchain, as a digital money, is based on Proof-of-Work (PoW) consensus protocol. PoW has worked tremendously well and can be useful for many industries. The opportunities are high in this innovative technology, and evolution in this area is just a beginning. This paper has described blockchain technology, the underlying concepts of blockchain and the implementation of Proof-of-Work consensus algorithm along with its performance analysis.