Hashcash is a proof-of-work system used to limit E-mail spam and denial-of-service attacks. Hashcash was proposed in 1997 by Adam Back and described more formally in Back's 2002 paper "Hashcash - A Denial of Service Counter-Measure". The idea "...to require a user to compute a moderately hard, but not intractable function..." was proposed by Cynthia Dwork and Moni Naor in their 1992 paper "Pricing via Processing or Combatting Junk Mail". Hashcash is a cryptographic hash-based proof-of-work algorithm that requires a selectable amount of work to compute, but the proof can be verified efficiently. For email uses, a textual encoding of a hashcash stamp is added to the header of an email to prove the sender has expended a modest amount of CPU time calculating the stamp prior to sending the email. In other words, as the sender has taken a certain amount of time to generate the stamp and send the email, it is unlikely that they are a spammer. The receiver can, at negligible computational cost, verify that the stamp is valid. However, the only known way to find a header with the necessary properties is brute force, trying random values until the answer is found; though testing an individual string is easy, satisfactory answers are rare enough that it will require a substantial number of tries to find the answer. More information...
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