2.1.0. What Is POW Mining?
POW mining has three aspects:
(a). Applying effort to solve the complex computational problems of a blockchain with the aim of increasing the security of the blockchain.
(b). Confirming the amount of effort (work) that was done to solve the computational problems.
(c). Blockchain gives rewards for the effort or work done.
In simple language, POW means, firstly, you endeavour to solve a computer problem that will increase the security of a blockchain. Next, your effort will have to be proven (confirmed). Finally, your effort will only receive a reward of payment from the blockchain when it has been proved or confirmed.
This means there are two sets of people that are involved in POW mining:
(i). Prover – this is the person who labours to solve the computational problem that will further secure the blockchain.
(ii). Verifiers – these are the people that confirm or prove the work (effort) done by the prover.
Once the Verifiers have confirmed the work done by the prover, the blockchain will then compensate the Prover with a certain amount of coins. In other words, there must be a consensus [agreement] among the verifiers about the work done by the prover before the blockchain can reward the prover. This is known as the Consensus Algorithm.
For you to understand this better, consider this illustration:
A Digger went to a field to excavate the soil in search of gold. As he dug deeper, he soon sighted something he thought was gold. But the material was covered with soil and impurities collectively known as ore. Therefore, he took it to a Goldsmith.
The Goldsmith tried to remove the ore around the material by smelting it. If what the Digger found was real gold, it would come out sparklingly beautiful after smelting, and the Digger would receive good money for his effort.
The Prover is like the Digger while the Verifiers are like the Goldsmith. The Verifiers assess and confirm the work done by the Prover much like the Goldsmith who confirmed that the material brought by the Digger was indeed gold.
To avoid any mistake, the Verifiers must agree among themselves that the work done by the Prover has indeed provided further security for the blockchain. Once such consensus agreement is made, the Prover will be rewarded with a certain amount of coins just as the Digger was rewarded with good money for his effort.
Of course, not only the Digger would be paid; the goldsmith would also be rewarded for his job in refining or smelting the gold ore. In the same manner, not only the Prover will receive the blockchain reward; Verifiers are also rewarded with coins.
Who are blockchain Provers and Verifiers? They are the Miners.