Proof-of-Burn (PoB)
By CoinGecko | Updated on Mar 03, 2020
On a technical layer, Proof of Burn performs block validation in the same way as Proof of Work, whereby the chances of a miner to mine a block depends on the resource they have commit to increase its mining speed. However, whereas Proof of Work gives better chances to miners with more mining power, Proof of Burn consensus allows miners to burn a coin/token to obtain the rights to better chances. Ergo, burning coins lets miners buy "virtual mining rigs" to improve their odds of mining block.
The Idea behind proof of burn is to address the intensive energy usage in Proof of Work consensus algoritm by allowing miners to also spend intensive resources to prove a miner's commitment
Related Terms
Cryptocurrency
A form of digital currency that utilizes cryptographic protocols to record ownership and prevent counterfeiting
Proof-of-Developer (PoD)
A concept of identifying the developers of a project as a means of vouching reputation for a project
Privacy Coins
Cryptocurrencies that are designed with transaction anonimity and user privacy in mind.
Trustless
Entirely verifiable, without needing to trust or assume an action is done completely and in good faith.
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