# Proof-of-Work (PoW)

Source URL: https://help.blockstream.com/education/glossary/proof-of-work
Updated: 2026-05-26T17:22:58.000Z
Letter: P

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The algorithm that concurrently secures the [Bitcoin](https://help.blockstream.com/education/glossary/bitcoin) blockchain, processes transactions, facilitates consensus, and mints new bitcoin. In PoW, Bitcoin miners compete to solve complex cryptographic puzzles with computing power, which is measured in [hashrate](https://help.blockstream.com/education/glossary/hashrate). The first Bitcoin miner to solve the block is rewarded with bitcoin (plus transaction fees) and wins the right to update the blockchain.  
  
More technically, miners fund find a numeric solution to the SHA-256 algorithm that meets a 

![](https://storage.googleapis.com/dxp-production-assets/content/glossary/proof-of-work.png)

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## Related Terms in This Letter
- [Payment channel](https://help.blockstream.com/education/glossary/payment-channel)
- [Pedersen commitments](https://help.blockstream.com/education/glossary/pedersen-commitments)
- [Peer-to-Peer (P2P) Network](https://help.blockstream.com/education/glossary/peer-to-peer-p2p-network)
- [Proof-of-Work (PoW)](https://help.blockstream.com/education/glossary/proof-of-work) (current)