Hello! @alphafx professor, how are you? For me, it is a pleasure to have participated in your class and SteemitCryptoAcademy! Thank you! The truth is that I liked the level of demand of this task, because it made me think and I love that.

Proof of burn is an alternative consensus algorithm that attempts to attack the problem of high energy consumption of a POW system. Proof of burn is a method for determining the initial distribution of a cryptocurrency in a decentralized manner. It is based on "burning," i.e., making units of an existing crypto currency, e.g., Bitcoin, unavailable forever.

The idea is that coin burning is provable and impossible to manipulate. If the source coin was issued in a fair manner and the burning mechanism is constructed appropriately, the resulting mechanism for issuing the new coin is also fair.

Humans have always carried the thought of burning money, sometimes literally, for purposes from artistic effect to protest, or even to prevent it from falling into the hands of the wrong people. Acts of money burning immediately followed the inception of Bitcoin in 2009, and the first recorded coin burning took place in August 2010, three months after the first real-world transaction with cryptocurrencies. However, for the first time, cryptocurrencies exhibit the unique ability to burn money so that it can be retroactively demonstrated in a burn test.

It was first proposed in 2012 by Iain Stewart. The burn proof consisted of a mechanism for irrevocably and demonstrably destroying tokens. The creation of convincing proofs transformed POB from being a marginal act to a rational and potentially useful endeavor.

While it is an interesting concept and capable of reducing some overhead, there is no fundamental difference between issuance based on combustion power and issuance based on burning coins that were issued based on combustion power.

There are several possible ways to implement this technically. The most popular way is to choose a specific Bitcoin address with low "Kolmogorov" complexity. For such an address, it is virtually impossible for anyone to have a corresponding private key. This address is known as "eater addresses". Thus, in the PoB, the burned tokens will be inaccessible to any user. However, the sending itself is recorded forever and it is possible to determine which address sent the coins.

You can send transactions to the address that will burn your own cryptocurrencies. It allows other users to mine/burn over your block and even take transactions from others to add to their block. All this burning activity keeps the network agile and users are rewarded for their activities (both burning their coins and burning others' coins).

The secondary currency then has a hard-coded protocol rule that any address that sends coins to this address, they are awarded a proportional amount of coins in the source currency.

Proof-of-burn is similar to proof-of-stake (PoS) in that both consensus mechanisms involve interaction with coins to secure the network. However, unlike PoB, coins locked in PoS systems are not permanently deleted; their holders can still access them and sell them in case they want to leave the network. On the other hand, PoB, unlike PoS, leads to a shortage of coins.

Note that the Proof of burn mechanism is a recent type of consensus algorithm. As such, it has not yet been proven to work in large networks. Some of the advantages of the PoB mechanism is that it is sustainable and its mining process is highly decentralized.

The main motivation behind the plan and creation of Proof of Burn was to create a consensus protocol that would be really hard to implement and more efficient than Proof of Work. Thus, the idea of consuming real and tangible resources such as a token with real value, in order to obtain the ability to mine inside the blockchain, was born.

In order for a miner using Proof of Burn to have the opportunity to generate blocks, a payment of a certain amount in the form of a token is required. Once this is done, the miner will have the opportunity to mine and verify purchases/transactions on the blockchain. This is intended to make the mining process difficult, avoiding denial of service attacks.

POB execution can be modified. For example, Slimcoin, a virtual money network that uses POB, allows a user to consume coins that not only gives them the option to go after the next block, but also gives them the opportunity to obtain blocks over a longer period of time. In any case, one year.

Basically, Slimcoin's POB execution joins three calculations: POW, POS and the central POB idea. The way coins are consumed uses POW; the more coins are consumed, the more chances there are to mine, consequently guaranteeing POS; and the whole environment follows the POB idea.

• It does not require an extreme measure of energy or logging power. Therefore, it is estimated that this transaction, as long as it does not use 100% environmentally renewable energy, is considerably more manageable and harmless to the ecosystem.

• Token burning interaction is done virtually, so no mining equipment or equipment is needed to consume crypto forms of money. Unified organizations of equipment are eliminated, which generates irregularity of benefits in the area.

• The Proof of Burn (PoB) ensures the solidity and security of the organization, by urging miners to make speculations (lighting) with coins and tokens. Therefore, it guarantees the fair and trustworthy conduct of miners, who would prefer not to lose their speculations.

• In expansion, it urges the obligation of the financiers with the extended project, which is thus maintained and guarantees the security of the value.

• It can also be used to enhance another token being developed or to consume digital forms of money not sold in ICOs.

• PoB also works with the transfer of tokens and digital forms of money in a considerably more decentralized and reasonable manner.

• Depending on the framework, the tokens being burned may arise from other digital currencies (such as Bitcoin) or Proof of Work (PoW). A factor that for some makes this consensus one that is, at this point, not so climate friendly.

• The interaction of confirming the work done by each miner is much slower than that of the Proof of Work (PoW).

• Without the assurance of recovering the value of the tokens consumed, Proof of Burn (PoB) customers face a comparative danger as when making investments.

While there are clear advantages of POB over POW, there are also a number of advantages it has over Proof of Stake. For example, Proof of Burn rewards entrepreneurial risk rather than wealth because, with Proof of Stake, the more coins you bet, the greater the rewards, resulting in a potential "rich get richer" scenario. In addition, while "staked" coins can be stolen by hacking the coins' private key, burned coins cannot be hacked as easily. Since an attacker would require considerable time to obtain a large amount of coins, the legitimate owner of the private could easily track them down.

Proof of Burn rewards long-term investments by providing that miners are effectively trading short-term losses for long-term gains. Thus, it triggers long-term participation in the project, unlike other tokens. In addition, due to the probability of profit, there is more likely to be a stable amount of nodes in the network, as there is incentive even when the price is low.

The idea behind POB strategies is that something is difficult to do, but easy to verify. The concept of Proof of Burn-in is that for miners to prove that they have done something difficult, all that is required is that the miners themselves find it expensive, rather than an actual resource requirement such as electricity or human labor or expensive. hardware. By burning the coin, it provides proof in addition to immutability.

I would like to thank once again the Professor @alphafx for the opportunity to participate in the class. It has been a very nurturing and educational experience. I gained a great deal of knowledge from this assignment. Best regards!