London, UK– Proof-of-work is a term used to describe a consensus mechanism that requires members of a network to put effort into solving complex math puzzles and quizzes to validate transactions. This mechanism is adopted to avoid invalid entries and ensure security. PoW not only allows transaction validations but mining of new tokens also.
PoW mechanism has given way for secure peer-to-peer transactions without the third party acting as an intermediary, i.e., financial institutions. Proof-of-work uses huge amount of energy to carry out mining and transactions, when it requires more miners to join the network. Bitcoin is the leading cryptocurrency that uses a proof of work consensus mechanism based on the SHA-26 algorithm.
Cryptocurrency, without a doubt, is data that can be used by users twice in a different place, so a system like PoW is needed to prevent using the same units twice. This double-spending problem got a solution in the form of a proof-of-work consensus mechanism that filters out invalid transactions. Miners have to compete to earn the right to process transactions. This PoW mechanism is saving the digital financial market from fraud and scams, providing a secure platform to earn a reward with efforts.
The Proof-of-Work mechanism was the beginning point for cryptocurrencies, and it has opened the door for next-generation cryptos and other consensus mechanisms like Proof of Stake, Proof of History, Pure Proof of Stake, etc. Given the rising popularity and growth of cryptocurrencies in the financial market, the potential for growth of Proof of work mechanism projects is also increasing. Furthermore, most of the leading crypto projects like BTC, ETH, DOGE, and LTC use the PoW mechanism. According to Mark Adams, a crypto expert at Investments Global, the PoW cryptos are giving the best investment opportunity in 2022 and might be a good option to add to the portfolio.
What are popular PoW Platforms?
Most of the cryptocurrencies in the digital market use proof-of-work for validation, and some of them are listed below:
- Bitcoin Cash
Top 5 Proof of Work Cryptocurrencies to buy in 2022
1. Bitcoin (BTC):
Bitcoin is a peer-to-peer decentralized cryptocurrency. It allows transactions between equal, independent network participants without any intermediaries facilitating them. It is the first-ever cryptocurrency to come to use in the digital market and has remained at the top.
Bitcoin is the pioneer of cryptocurrency, which is not worth more than $2 trillion. SHA-256 algorithm secures Bitcoin. BTC services include providing ownership rights as physical assets. It consists of both hot and cold wallets, which connect users to the web and allows users to store their assets outside the internet.
The BTC token is Bitcoin’s native currency. Today’s live Bitcoin price is $29,506.29. BTC is currently ranked #1 in the world, with a live market cap of $562,309,547,942. The circulating supply is 19,057,275.00 BTC coins, and the maximum supply is 21,000,000.
2. Ethereum (ETH):
Ethereum is an open-source, decentralized blockchain that has its own cryptocurrency. Ethereum serves as a platform for many other cryptocurrencies and the execution of smart decentralized contracts. ETH has given a safe and secure platform to its users all over the world to make and run the software.
Ethereum introduced the concept of blockchain smart contract platforms. Smart contracts are computer programs that perform necessary functions to carry out the agreement between parties on the internet. Ethereum hosts other cryptocurrencies through the use of the ERC-20 compatibility standard, calling them tokens.
Being the second-largest cryptocurrency, it has eight co-founders, including Vitalik Buterin, Gavin Wood, and others.
The native toke of Ethereum is ETH. ETH is currently ranked #2, with a live market cap of $211,801,251,081. The current ETH coin price is $ 1,748.52. There are 121,036,527.06 ETH coins in circulation, with a total supply of 121,036,527 ETH coins.
3. Dogecoin (DOGE):
Dogecoin (DOGE) is an open-source cryptocurrency based on a dog meme! The logo featured a Shiba Inu and was created as a fun cryptocurrency to have a greater appeal. The distinct feature of Dogecoin is its Scrypt technology.
The altcoin’s block time is 1 minute with total supply uncapped, leaving no limit to the number of Dogecoins mining. They can be mined solo or by joining a mining pool using digital currency on Windows, Mac or Linux, or a GPU.
DOGE is the native token of Dogecoin. The current ranking of DOGE is #10, with a market capitalization of $ $10,665,551,811. It has a total quantity of 132,670,764,300 DOGE coins and a circulating circulation of 132.67B DOGE coins with a current price of $0.08034.
4. Litecoin (LTC):
LTC is a cryptocurrency based on the leading Bitcoin (BTC) protocol but has its distinct features as well. It provides fast, low-cost, and secure transactions by leveraging significant features of blockchain technology. The extremely low transaction fees and fast block time has made it a perfect choice for micro-transactions and point-0f-sale payments.
Litecoin is considered the second most popular pure cryptocurrency, with Bitcoin at first. The amount of LTC coins circulation increases with each newly mined block.
Litecoin, with a native token LTC, is currently ranked at #20. Its live market capitalization is $4,366,707,969. The circulating supply of LTC is 70,426,881.28 LTC coins, with a maximum supply of 84,000,000. The current price of an LTC coin is $62.04.
5. Aerum (XRM):
Aerum is a cryptocurrency operating on the Ethereum platform. It focuses on financial inclusion, digital marketing, gaming, and asset tokenization by providing various solutions like removing friction, intermediaries, and gatekeepers.
Aerum has created a secure digital mobile identity management platform along with a staking platform based on Aerum blockchain protocol. This cryptocurrency provides free transactions and unlimited scalability.
Aerum is partnered with SignKeys, Bezos, CoreLedger, Bethereum, Zangll, Veracity Protocol, Crowd Holding, Coinfunda, and Crypto media.
XRM is the native token of Aerum. It has a current supply of 1,000,000,000 XRM coins and a circulating circulation of 13% AVAX of the total. The current price of XRM is $0.00054956.
The proof-of-work mechanism provides a secure platform, and there are several cryptocurrencies you can invest in that use this consensus mechanism. These five cryptocurrencies are some of the best options for those investors who want to get exposure to this platform. Explained above are the major players using the PoW mechanism.
In this article, we have discussed different crypto projects you can invest in and their details. Each of these networks has a different work lineup and style, facing certain competitive threats. So do your own due diligence before investing in any of these companies, and be mentally ready for the risks of investing.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.