Hi it’s Keir Finlow-Bates here, and I saw
an infographic a couple of days ago
which claimed that miners validate
transactions by performing proof-of-work
which is a misconception because miners
validate a transaction by checking the
signature on the transaction to confirm
that it’s authorized, and by checking the
history of the blockchain to make sure
that the authorized transaction is
actually moving a cryptocurrency or
quantity of cryptocurrency that is under
the control of the authorizing party
submitting the transaction, and the proof
of work part is how a miner packages all
these validated transactions into a
block and gets it on to the blockchain.
That’s a second separate process, and the
best analogy I can think of is: if you
think of a transaction as you
voting in an election and having a
ballot paper, and how your vote actually
makes it into the tally on the ledger of
the results of the election, then the
“validation” of your vote is what the
person at the polling station does to
check that you’re allowed to vote stick
your paper into the ballot box, and the
sort of proof-of-work part is what is
happening in the counting station, where
people are probably once again checking
the the votes (but probably not so
carefully) and tallying them and putting
them onto the ledger that has the
results of the election. So that’s what
is actually happening – there are two
parts: validate the transaction, and then
get the transaction packaged into a
block and put on the blockchain, and the
second one is the one that uses proof of
work. I hope that clarifies things a bit,
and see you in the next video soon.
Bye for now!