> For the complete documentation index, see [llms.txt](https://pemcoin.gitbook.io/pem-project/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pemcoin.gitbook.io/pem-project/3.-blockchain-technology-applications/3.4-proof-of-work-consensus-algorithm.md).

# 3.4 Proof of Work Consensus Algorithm

Participants in the blockchain network are rewarded based on their contributions to the creation of blocks. To achieve this, participants execute a Proof of Work (PoW) through the blockchain's consensus algorithm, a process known as "mining".

Proof of Work (PoW): This is a mechanism for verifying and confirming transactions by solving complex mathematical problems. Miners compete to generate new blocks by solving these problems and are rewarded with block rewards.

Hash Function: Based on the Keccak-256 (SHA-3) hash function.

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