Proof Of Work In Blockchain Training Ppt

Slide 1

This slide provides information regarding the overview of PoW algorithm used in blockchain technology. It also includes details of mathematical puzzle used in mechanism such as hash function, integer factorization and guided tour puzzle protocol.

Instructor’s Notes:

• Miners: In the blockchain network, users send each other digital tokens, and a decentralized ledger maintains the record of all the user transactions into blocks. The nodes that confirm the transactions and arrange blocks are known as miners
• The major types of the mathematical puzzle are:
  • Hash Function: Based on the known output, find the input
  • Integer Factorization: Present a number as a multiplication of two other numbers
  • Guided Tour Puzzle Protocol: In case of suspected Denial of Service (DoS) attack by a server, computing hash function via a particular order of nodes

Slide 2

This slide provides information about the working of PoW consensus in the blockchain showcasing how miners get rewarded for successfully identifying nonce value and winning a chance to create a new block.

Instructor’s Notes:

Nonce: The full form of the nonce is "number only used once." It is an attribute in the block header structure so that when rehashed, it meets the difficulty level restrictions in the blockchain.

Slide 3

This slide highlights the major benefits of PoW consensus, such as defense from DoS attacks and preventing abuses and misuses. It also covers details of proof of work algorithm’s limitations of being hugely expensive and uselessness of computations. This slide also provides information regarding cryptocurrency coins that use PoW consensus, which is bitcoin.

Instructor’s Notes:

The major benefits offered by PoW are as follows:

• Defense against DoS Attacks: Proof of Work prevents a DoS (Denial of Service) attack on the blockchain network. The cost involved is just prohibitive and it also requires a lot of computational power to execute one
• Prevent Abuses and Misuses: In Proof of Work, it is crucial to have a large computational power to solve the puzzles and create new blocks. Thus, preventing the holders of huge amounts of money to become solely in charge of making decisions for the entire network

The PoW consensus has following limitations:

• Hugely Expensive: In PoW, mining involves high costs due to need of specialized skilled talent and complicated hardware and software to run complex algorithms
• Uselessness of Computations: In PoW, miners spend considerable resources to compute the calculations but these can't be applied to any other field

Slide 4

This slide tabulate the advantages and disadvantages of the PoW algorithm used in Blockchain. The major benefit of the PoW mechanism is the high level of security, and the primary limitation is high cost and energy usage.