Proof of Burn (PoB)

Last updated 5 months ago

With proof of burn, instead of pouring money into expensive computer equipment, you ‘burn’ coins by sending them to an address where they are irretrievable. By committing your coins to never-never land, you earn a lifetime privilege to mine on the system based on a random selection process. A user who gives up short term wealth proves that they are following the consensus mechanism and is rewarded with a lifetime privilege to mine the next block on the blockchain. Coins are sent to unspendable address

Used in

  • Slimcoin to get the right to write blocks Node should “burn” amount of coins. The more coins Node “burns” more chances it has to create blocks (for long period) -> Nodes address gets a score called Effective Burnt Coins that determines chance to find blocks. Block creator rewarded with block rewards.

  • TGCoin (Third Generation Coin)

Pros

Keeping coins is not rewarded like in PoS

Cons

  • Burning coins doesnt guarantee that you’re selected to mine future blocks, whales are favored

  • security get better with huge market capital (attack costs increase)

  • As with PoS, the principle is not suitable for distributing the first coins.

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