When a transaction is performed on the blockchain network, the network need to verify it. It is necessary that each node of network agree on the network's real and accurate state. To achieve this goal, consensus algorithm are being used in the blockchain technology. The basic goal of these algorithm is to justify and validate the transactions that are performed on the blockchain network. The security of the network is also maintain and managed by using the consensus network. It's a process of bringing the blockchain network nodes to a point where each node agree on the current the position of data ledger. There are multiple consensus network used in blockchain network. In this homework, i will explain the Proof of Burn in detail.

The Proof of Burn(PoB) is a consensus algorithm which is used on the blockchain network to allow the Virtual cash coupons to be utilize by the blockchain network nodes. The Proof of Burn can be define as "having proof that you have burnt something". It means that the minors on the blockchain network need to show the proof that he/she has burnt some coins. Not burning coin in actual but main concept behind this algorithm is that when some coins have no further usage and be useless, the minors send all those coin to an eater address. That node address is able to verify. The assets are send so that they will become unable to spend in future anymore. It's impossible to access those eater addresses.

These addresses are able to verify but unable to access as they do not have any private key. A specific portion of the token is signed to protect the PoB digital currency. Multiple coins are send by minors to the eater addresses. These are unspendable coins and cannot be spend at all by any one even not by eater addresses toward which they have been sent. To make the consumed coins completely useless, they are tracked by a record. In other words, the word "burn" in PoB means that the minor have to invest some of his assets to be able to mine. He would get the profit for that investment too. The minors would be able to get the benefits of mining and get the profit. There will be more chances of getting reward if minor burn his more assets. The minors then will be able to mine, verify and validate the transactions.

Different version of PoB has been introduced in market but the most reliable is the PoB which was introduced by Ian Stewart. According to Ian Steward definition the minors would own the virtual mining hardware by burning the crypto currencies.

It was introduced by Ian Stewart in 2012. The basic goal was to maintain the supply-demand balance in such a way that the price of crypto currency should be increase and number of crypto currencies should be decreased. Another goal of PoB was to reduce the power consumption of bitcoin mining. The BitcoinTAlk is the crypto currency platform where the first design of the PoB was introduced.

As we all know that the excess power utilization of Bitcoin damaging the Green shield quickly. This excess of power consumption is dangerous for the world and for Ozone layer too. To reduce this much power consumption of Bitcoin, the PoB algorithm has been emerged and work very efficiently. It reduce the power consumption by burning the already existed currencies to put different sort of capitals in blockchain network without using any device or any apparatus for mining. Moreover it contribute a lot to balance and manage the security of blockchain network and to balance the supply-demand chart. By burning the crypto assets, the minors are able to mine to get reward. The more they burn their crypto assets, the more the chances are to get rewarded.

The minors burn their assets to be able to mine. The crypto assets are transferred to an unspendable or eater address. The crypto assets are sent for burning purpose by the minors to the fixed addresses. These address are verifiable but not accessible. No one knows the private key of these addresses. There is no need any devices to perform this task. Minors burn the local or alternative currency and get local crypto asset. When the minor send the asset to the unspendable address, that addresses cannot be accessible by any other minor. So in this way those assets get burned as they cannot be used by anyone.

The basic purpose of PoB is to manage the security of the blockchain technology by burning the as much crypto currencies as possible. This will help to maintain the balance among the amount of crypto currencies which are being supplied and which are being consumed. By burning, the price of crypto currencies rise and the number of crypto currencies fall.

The Proof of Burn consensus algorithm is used in Slimcoin blockchain network. On slimcoin, the minors burn their assets. They are rewarded with crypto assets by finding the blocks in return equal to the amount of the assets they have burnt. So if you burn more you burn your assets, more the chances to find the blocks.

The proof of burn make this sure that all the node are agree on a point to verify a transaction on the blockchain network. The minors first burn their assets and become minor. Only then they can do mining on the network and can earn reward. They cannot get back the assets which they burned once. The minors have their crypto assets in form of PoS in PoB consensus algorithm.

While in proof of stake consensus algorithm, the minor need to fix their crypto assets on the network. Once they start unstake transaction, they can get back their locked assets.

Proof of Stake	Proof of Burn
People who lock their assets become minors	people who burn their assets become minors
Minors lick their assets in PoS	Minors burn their assets in PoB
Minors can get back their locked assets after the beginning of an unstake transaction	The burned assets cannot get back at any coat
Minors need to verify and validate the transaction for getting the crypto currencies as reward	The minors need to burn some assets to become minors. Only then they can invest and earn reward

In Proof of Work, the network security become strong when the minors invest more power and utilize more assets. The minors get reward as much as they invest the power and utilize the assets. That's why the environment become a bit competitive

The Proof of Stake does not require to the minors to invest power and resource. The minors has to burn their assets to get the reward. The system security is make strong by burning the assets by minors on the Proof of Burn consensus algorithm.

Proof of Work

Proof of Burn
To get crypto currencies, Minors have to invest power for approval of transaction	To get crypto assets, Minors have to burn assets.
Minors invest more assets and power	Do not need to spent more assets and power to own the mining apparatus
Security is maintained by consuming power and assets. There is a very strong competition between the investors.	Security is maintained by burning the crypto currencies. There is a healthy enviroment,

Does not require any mining hardware.

Beneficial for environment by less consumption of energy.

Advance investment is turn into profit for investors and enhance the system security.

By burning, the number of crypto currencies will be decreased. So the price of crypto assets will be rise. The crypto currencies are burned periodically for a healthy competitive environment on the network.

The investors are encouraged for long time investment because of low cost.

The bitcoin consume higher energy as damage environment. Instead of this., the proof of burn consensus algorithm use less energy.

1- Does not use on large scale network

2- The transaction verification process is slow

3- As they burnt coins cannot be backed so the minors need to take responsibility of all their transaction.

4- By burning the crypto currencies like bitcoin which are achieved from PoW, more energy will be consumed. Moreover, the cost for maintaining the mining devices to balance the PoW will be increase.

5- PoB is still required to improve the its security .

6- It will be a great risk for network security if the burned assets get back.

7- It is not most commonly used consensus algorithm

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