Magazine No. 2 "Proof of Work"

Bitcoin computers and data centers, also known colloquially as mining farms, play a crucial role in securing the network with their energy-intensive puzzle-solving process, because only thanks to the proof-of-work process is a physical connection to the real world established. Since this process is complex and expensive, attacks on Bitcoin are not worthwhile. All participants are required to adhere to the rules set out in the code in order to receive a reward for honest work.

However, PoW is repeatedly attacked and questioned, especially outside the Bitcoin community. Be it out of sheer ignorance and simple disinterest or because it is in keeping with the spirit of the times, with politicians hoping to win votes with pithy attacks on Bitcoin or legacy media optimizing their headlines for clickbait, once again. Reason enough to look into the topic more intensively, to run two computers in Paraguay with electricity from surplus hydropower and, in this issue, to look at Bitcoin's energy balance from all possible angles in order to counter unqualified attacks on PoW with pragmatism.