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Hello everyone,
I'm very delightful for this classes and it's very important lessons. I'm very thankful to our agile and seasoned crypto-professor @alphafx for this lesson. I will create this post based on the homework task given at the end of the lecture.

PROOF OF BURN (POB).

This is a hybrid mechanism adopted and designed for blockchain technology to enhanced the validation and rewarding system in the Blockchain technology.

In proof of burn, the miners "burn" their Fiat currency or crypto currencies for the opportunity to write on a new blocks in the Blockchain technology. The essence of this mechanism is to avoid unnecessary energy waste of the proof of work (POW) where a high energy consumption is needed.

POB is a brain child of a great inventor called Iain Stewant, who designed this algorithm in that the "burnt coin" serves as the mining "rig". The miners burn their coin which serves as a mining rig where a right to mine new block will be granted. The higher the burnt coins, the higher the mining of new blocks will increase as well as the reward of new coins.

However, this highly "use" term in this mechanism, "Burn" means that the miner will send their assets to be burnt to un-spendable address so as to mine a new block. This un-spendable address is well-known and verifiable. But the coins sent into it will not be used by the sender as if it's burned so that the right to mine a new block will be granted. Spending the coins to verifiable un-spendable address is not same with staking as observable in the proof of stake (POS) where the sender or owner of the asset "staked" can still get their assets back and usable. But in the case of "burn" coins, the right to use the assets are lost in the exchange of right to write new blocks.

In this special algorithm, the "burning" of the coins or virtual Fiat currency helps to keep the mechanism agile and rewardable because of the right of mining granted. The "burnt" coins can be the Fiat currency or the equivalent of it in the alternative well-known crypto like Ethereum, Bitcoin etc.

PROOF OF WORK VS PROOF OF BURN

A miner in the POW will need a high computation power to solve a cryptographic puzzles to be rewarded with the token of the Blockchain technology mined and it took longer time too but in POB, the miner send a certain amount of his "assets" to be "burned" in order to get reward in the form of the token of the Blockchain technology. The sender's coins send to the "eater address"generated without a private passwords will be inaccessible and useless as if it is burned thereby leading to the scarcity of the burnt coin and improved value. There will be no waste of energy in the solving cryptographic puzzles as in POW in the POB. The time used in validation of blocks in POB is higher than POB. Good examples of POW includes Bitcoin while that of POB is Slimcoin.

However, the rewards of POW depends on the computational algorithm and the energy spent while in POB, it depends solely on the burnt coins of the miner.

PROOF OF STAKE VS PROOF OF BURN.

POS had the assets of the miners "staked" and not burnt in that the assets used in the mining which is staked can be redeemed while in the POB, the miners burn their assets in order to engage in mining effectively. Although in POS, the staked coins can be redeemable even during the mining thereby reducing the rewards of the miner but in POB, the assets used can't be redeemed.

However, the rewards of the mining depends mostly on the assets of the miners in these mechanisms. Therefore, the higher the assets "staked" in POS and the higher the assets "burn" in POB, the higher the reward of their performance in the form of tokens.

ADVANTAGES AND DISADVANTAGES OF POB

Like all other consensus mechanism, POB have numerous advantages and disadvantages. Which includes:

ADVANTAGES OF POB

• Reduced energy spent on the mechanism making it highly sustainable and eco-friendly.
• Market scarcity, burnt coins reduced the amount of coin in circulation creating market scarcity Which is very good for price values of the coins.
• Reduced expenses and maintenance. since coins are burn on virtual mining rig, the cost of manual mining rig and it's maintenance is mostly reduced or removed.
• Decentralized mining, the mining is solely on the burnt coins of the miner making it highly decentralized and individually.

DISADVANTAGES OF POB

• Unpopular. The mechanism still not known by many and it's process of burning is not all clear for would-be miners. This is really affecting this mechanism.
• Small scales. This mechanism is highly efficient for small scales mining but more studies is needed to improve it for larger scale.
• Since other digital coins like Bitcoin can be used as burnt coins in this mechanisms for it's process. This makes it not highly eco-friendly as those coins are gotten from POW.

CONCLUSION

However, there are many uncountable consensus mechanism in the Blockchain technology. Many are limited in some features and other are superiors but with demerits too. The innovation of new mechanism is just the enhancement of the previous mechanisms for effective blockchain technology.

Thanks to our crypto-professor @alphafx, @levycore, @steemcurator02 and @steemitblog for the encouragement, enlightenment, motivation and support.