# Proof of Work

BSV Blockchain uses a Proof-of-Work system that requires nodes competing to extend the blockchain to solve a computationally demanding and energy intensive puzzle as part of the block creation process. Verifying the proof to the puzzle is the first thing that nodes do when they are validating a proposed block received from another node. While it takes a lot of computing power to find a valid Proof of Work solution, it is very quick and easy to check.

This system serves as a gating function by galvanizing nodes to invest money in their block production systems, precipitating the formation of the small world network discussed previously.

It is very important that nodes who have invested in large and expensive hardware systems, and who have expended significant quantities of energy finding a block, have their newly found block validated and accepted as quickly as possible. Every millisecond spent on the process of sharing and broadcasting that block represents time and energy spent competing with it, increasing the chance of a competing block being found and kicking off an orphan race in which only one node will win the reward while competitors waste their time and resources.


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