The Steemit Crypto Academy Week 13 | Season 2 | - Homework Post for @alphafx
PROOF OF BURN(P.O.B)
PoB (Proof of Burn) is called the Proof of Burn mechanism, which is a promise to vote who has the leadership of the network by burning the tokens in their hands .
The greater the number of tokens burned, the higher the probability of achieving network leadership. PoB is a method of distributed consensus and an alternative to the proof-of-work mechanism. It can also be used to bootstrap a cryptocurrency.
It is undeniable that blockchain technology is an invention destined to change the world in ways that we have not even begun to imagine.The key part of any blockchain (needed for normal operation) is some kind of consensus algorithm, which can protect the blockchain and ensure its effective operation.
Consensus algorithms have multiple purposes, two of which are to prevent manipulation and ensure the validity of transactions.
Currently the most widely used consensus mechanisms are called Proof of Work (PoW) (that is, the Bitcoin consensus protocol), and Proof of Stake (PoS) (used by Peercoin and Dash)
Currently exploring alternative consensus mechanisms, one of which is called Proof of Burn (PoB). In the burning proof mechanism, users are required to "burn" or permanently make certain mining PoW cryptocurrencies unavailable.When PoW coins are burned, users will receive coins or tokens that replace cryptocurrencies, or in some cases will gain other mining privileges on the network.
Therefore, the combustion proof works in a fairly simple way. The miners of PoB coins send the coins to unusable addresses (also known as " diners addresses ") so that they will never be in circulation or burned.
These transactions are recorded on the blockchain to ensure that there is necessary evidence to prove that the coins cannot be spent again, and to provide rewards to users who have burned the coins
The idea of burning proof consensus is that users burn cryptocurrency to show a long-term commitment to the coin by burning, because they are losing short-term in exchange for long-term gains. Some people also believe that burning coins consumes less resources. In fact, the resources used are people's willingness to delay profit.
Over time, users who burn proof coins will continue to receive rewards, or increase their share of alternative coins, or gain greater privileges to mine on the network. In this way, the more coins users consume, the greater their chances of successfully mining the next block, thereby further increasing the reward.
There are several ways to implement the burning proof consensus mechanism. In some cases, existing proof-of-work coins (most typically Bitcoin) can be burned in exchange for PoB coins. In other cases, actual PoB coins are burned to obtain increased mining privileges.
Just as the cost of mining Bitcoin in the form of hardware and electricity costs increases over time, the cost of mining PoB coins also increases over time because more coins need to be burned to maintain the same probability of being selected to mine the next block.
The cannibal address is only used to store coins that cannot be used again or to burn coins. Although most public addresses are generated from a private key, and then the holder of the private key can access any coins sent to that address, the eater address is a randomly generated address that has nothing to do with the private key.
Since there is no private key association and no private key can be generated from a public address, any coins sent to the consumer's address cannot be accessed or spent.
If you want to see its actual effect, this is a diners address at the time of writing, which is worth more than $100,000 in Bitcoin. These bitcoins are now inaccessible and have basically disappeared forever, although they do remain in the calculated supply.
ADVANTAGES OF PROOF OF BURN(P.O.B)
1)It encourages the long-term commitment and time span of the project , this gives the coin greater price stability, because long-term investors are less likely to sell or spend their coins.
2)It is said that Burn-of-Burn is better than Proof of Work in ensuring that coins are distributed in a fair and decentralized manner.
3)Contrary to proof-of-work mining, we have all seen how the rise of ASIC mining pools has led to greater concentration of mining.
DISADVANTAGES OF PROOF OF BURN(P.O.B.)
1)Although proponents of Proof of Burn say that it does not use resources, critics claim that Proof of Burn does involve a waste of resources because it wastes the resources used to generate burnt coins.
2)There is also a problem similar to the one seen in the proof-of-stake consensus, that is, people who own a large number of coins continue to accumulate more coins. The problem of rich people becoming rich.
3)Proof of burning is also called a high-risk agreement, because there is no guarantee that the user will recover the full value of the burned coin.
There are several examples of coins that use proof-of-burn. Coins are becoming more and more popular as an alternative to consensus protocols.
PoB coin the most famous example is probably counterparty (XCP) , which uses PoB sowing their tokens. Bitcoin is sent to an unusable address, and the user receives tokens from the other party.There are other such Slimcoin (SLM) , as a mining method and consensus mechanisms to burn coins, as well as trigger (TRIG) , based on counterpart agreement.
Proof of Burn is a novel method for reaching consensus on the blockchain, and given its commitment to maintaining decentralization and lack of resource-intensive mechanisms, it may be used more and more.Some projects have used some coin burning as a way to stabilize and increase the price of their tokens, thereby making them more attractive to investors.
Proof of Burn is one of the various consensus mechanism algorithms implemented by the blockchain network, which can ensure that all participating nodes agree on the correct and accurate state of the blockchain network, thereby avoiding any possible double-spending of cryptocurrency.
The burn certificate obeys the law of "burning" or "destroying" coins owned by miners, thereby allowing them to earn mining revenue.
task satisfactorily completed.
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