Figure 3.4: Implementation of algorithm in blockchain

If a miner manages to solve the puzzle, the new block is formed. The

transactions are placed in this block and considered confirmed.

Figure 3.5 : Transactions placed in this block and considered confirmed

PoW consensus algorithm – disadvantages

The disadvantages of the PoW consensus algorithm include huge

expenditure, “uselessness” of computations, and 5 1%

attack.