What is Proof of Work (PoW) in cryptocurrency?
a) A consensus mechanism that requires solving complex puzzles
b) A way to create a private key
c) A method for storing cryptocurrency
d) A type of decentralized exchange
Answer:
a) A consensus mechanism that requires solving complex puzzles
Explanation:
Proof of Work (PoW) is a consensus mechanism that requires participants (miners) to solve complex cryptographic puzzles to validate transactions and secure the blockchain.