Hello everyone, it's nice to meet again this week, this time I will try to complete the assignment from the professor @alphafx . The task this time is very extraordinary, I am very excited to do it.

Proof-of-Burn

Proof-of-burn (PoB) is a blockchain agreement mechanism that uses minimal energy, when compared to the decentralized prof-of-work mechanism, which also uses the PoB method, they ensure that the miners will agree with the burning of coins. This is a process which aims to permanently delete cryptos from current circulation.

The large number of coins that the miners burn will show the virtual power of the miners themselves. therefore, the number or number of coins that are burned will affect the strength of the miners themselves.In the combustion network process there is evidence that the burning process of coins will later send coins to the address of the eater. This address can later be verified publicly but cannot be accessed arbitrarily.

Although basically PoB and PoS have a similarity in that the two mechanisms they use are consensus which involves interacting with coins to secure the network, in contrast to PoB coins that are trapped in the PoS system cannot be removed permanently later. the holders can still access and can also resell it if they want to leave the network.

In order to prevent unfair profits for beginners, the PoB system has implemented a mechanism that will have a gradual burning process of cryptocurrency coins in order to maintain mining power. In order for the competitive advantage to be maintained, miners can also invest gradually in order to get more equipment. both along with the advancement of technology.

What Is Proof of Burn For Cryptocurrency?

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Proof of burn is part of the consensus mechanism algorithm that has been implemented by the blockchain network in order to ensure that all participating nodes have reached a mutual agreement about the correct and valid status of the blockchain network. the purpose of the algorithm is to avoid cheating such as double spending of cryptocurrency coins.

Understanding Proof System

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Blockchain is the main database for cryptocurrency. Here there is all the information related to the transactions contained in these blocks and blocks which later act as a unit that stores data from blockchain. A new block can be written if the node of the blockchain agrees to a transaction stage that the node considers valid.

Due to the nature of a stand-alone and decentralized network, an automated mechanism is needed to ensure that participating nodes only agree to process transactions that are already valid. important tasks like this are only done by consensus-mechanism algorithms.

Proof of Work

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Poof of Work is the most famous concession in the Algorithm system, Miners will get rewards that can be used to update blockchain. This will later need to use computing power to solve equations in mathematics and can generate cash prizes.

Much or at least the amount paid for the computing equipment that is needed and will later be used to solve cryptographic puzzles, this will affect the high and low chances of them getting a score in terms of mining blocks. However PoW requires expensive hardware to approach and this method has problems as it is hampered by high costs.

Proof of Stake

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Proof of stake is a different algorithm in that they distribute equal rights to miners according to the amount they hold in crypto. In this system blockchain is managed directly by validators who have been randomly selected and will later bet the original network token and will later be locked into the blockchain to generate and approve the block.

It is a pity that the construction that has this easier PoS system is even more vulnerable to attacks and also because of the continuing abundance of profits to the biggest coin holders, in this how much you feed the more you get.

Advantages Proof-of-Burn

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There are several arguments for proof of burn and one of them is the long-term commitment and time horizon for a project. In theory this has clearly created a fairly stable and larger price for this coin because long-term investors are not trading their coins.

In terms of distribution and decentralization the Proof-of-Burn coin is much better than proof-of-work. If we compare it to proof-of-work, we can see how the emergence of pools in ASIC mining has led to a greater centarization of mining.

Disadvantages Proof-of-Burn

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Critics have said that proof-of-burn has used the wasteful resources they used to produce coins that burn and go to waste.

Another problem that arises in proof-of-burn is that those who have more coins will continue to accumulate more coins and this causes the rich to get richer.Since there is no guarantee for users to recover burned coins, proof-of-burn is considered a high-risk protocol.

Conclusion

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Proof-of-burn (PoB) is a blockchain agreement mechanism that uses minimal energy, when compared to the decentralized prof-of-work mechanism, which also uses the PoB method, they ensure that the miners will agree with the burning of coins. This is a process which aims to permanently delete cryptos from current circulation.

Since there is no guarantee for users to recover burned coins, proof-of-burn is considered a high-risk protocol.

Sorry if there are words and writing that are wrong, if other friends want to comment, please comment in the comments column below.

Thank you for reading my writing, see you in the next assignment.

Best regards @karimjz

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