LAYERED
PROOF OF WORK
Scaling proof-of-work (PoW) blockchains through layered architectures improves transaction throughput while maintaining security. Layer 1 ensures base-level security via PoW, while Layer 2 solutions, like the Lightning Network, process transactions off-chain and periodically settle them on the main chain. These layers leverage the same mining hardware, preserving the security of the base layer while increasing scalability. This approach allows PoW blockchains to handle more transactions efficiently without compromising the trustless security model of PoW.
POW ECOSYSTEM
LAYER 1:
SHA-256
Bitcoin is a decentralized digital currency that uses the SHA-256 cryptographic hashing algorithm in its proof-of-work consensus mechanism to secure transactions and maintain the integrity of its blockchain.
Ethash
Ethereum Classic is a decentralized blockchain that uses the Ethash proof-of-work algorithm to secure its network and validate transactions, maintaining the original Ethereum blockchain after the split in 2016.
RandomX
Monero is a privacy-focused cryptocurrency that uses the RandomX proof-of-work algorithm to enhance decentralization and security by optimizing mining for general-purpose CPUs.
Equihash
ZCash is a privacy-focused cryptocurrency that uses the Equihash proof-of-work algorithm to enable efficient mining while supporting shielded transactions for enhanced privacy and confidentiality.
Scrypt
Litecoin is a peer-to-peer cryptocurrency that uses the Scrypt proof-of-work algorithm, designed to be memory-intensive and ASIC-resistant, allowing for more accessible mining compared to Bitcoin.
Scrypt
Dogecoin is a cryptocurrency that uses the Scrypt proof-of-work algorithm and participates in merged mining with Litecoin, allowing miners to secure both networks simultaneously without additional computational cost.