Crypto Academy season2 week5-Homework post for[@alphafx] Consensus Algorithm

Proof of Burn (PoB)

The notion of Proof of Burn by Iain Stewart is reasonably the most recognized around the cryptocurrency world. It was presented as a higher acceptable substitute to the PoW consensus algorithm.
Proof of Burn may reassemble the Proof of Work algorithm but with shortage in rates of the energy consumed. The block confirmation procedure of Proof of burn built networks do not need the use of strong computational resources and do not rely on powerful mining hardware.
Rather, cryptocurrencies are burnt knowingly as a method of investing in resources in the blockchain,now the miners do not necessarily need to invest physical resources.
To my understanding, by carrying out coin burning, the users are qualified to defend their dedication to the network, thereby boosting their right to mine and
Confirmation of transactions. Hence the procedure of burning coins stands for virtual mining power the higher coins burnt to satisfy the system, the higher the mining power the user has and,that is the more the probability to be taken as the next block validator.

Cryptocurrency using the proof of burn (POB)

• Bitcoins
• Binance

The way Proof of Burn operates

In my own words, the procedure of burning coins method is made up of releasing them to a public confirmable address to where they will be kept beyond reach.
Continually, these addresses are accidentally created even without a private key been connected with them.
Constantly, the procedure of burning coins depreciates market ease of access and generates an economic shortage, thereby causing a positive higher movement in the value. But apart from that, coin burning is also another means of funding in the security of the network.
Reasons that makes Proof of Work blockchains secure is that the miners invest more in resources so as to make gain. In other words Power of Work miners will have to be true in other to support the network not to allow the remaining investments from being misused.
This idea is also the same with Proof of Burn algorithms.
Not only funding Proof of burn blockchains are expected to be secured by the investment gotten through coin burns.
Proof of burn systems give out block rewards to it's miners and within a while, these rewards are replaced by the remaining investment of the burned coins.
There are various sources in which we can evaluate this Proof of Burn. It may be performed by mining through the burning of Bitcoins, or acquiring consensus by burning native coin.

The Proof of Burn (POB) vs Proof of Stake(POS)

Something they share in common is the fact that the block validators have to fund their coins in order to partake in the consensus mechanism. In this way Proof of stake blockchains needs forgers to stake their coins, often locking them up. Incase they choose to leave the network, they might collect those coins and sell them in the market. Hereby, no cause for market scarcity because coins are collected out of circulation for a while. Unlike the proof of burn block validators will destroy their coins permanently, Thereby causing a steady economic scarcity.

ADVANTAGES

• More acceptable & lessen power
  Usage
• There is no cause for mining hardware.
• Burning of coins reduces the movement of supply.
• It allows long-term dedication by the miners.
• Coin distribution and mining serves to be less centralized.

DISADVANTAGES

• The PoB is not that friendly because the Bitcoins that are burned are created through PoW mining, and this takes more resources.
• Not certified to work on bigger scales. its efficiency and security needs to be tested more
• The confirmation of the work concluded by the miners is slow.its not as fast compared to Proof of Work blockchains.
• The procedure of burning coin is not crystal clear or confirmed simply by the mean user.