Proof-of-Burn (PoB)
By CoinGecko | Updated on Mar 03, 2020
On a technical layer, Proof of Burn performs block validation in the same way as Proof of Work, whereby the chances of a miner to mine a block depends on the resource they have commit to increase its mining speed. However, whereas Proof of Work gives better chances to miners with more mining power, Proof of Burn consensus allows miners to burn a coin/token to obtain the rights to better chances. Ergo, burning coins lets miners buy "virtual mining rigs" to improve their odds of mining block.
The Idea behind proof of burn is to address the intensive energy usage in Proof of Work consensus algoritm by allowing miners to also spend intensive resources to prove a miner's commitment
Related Terms
Proof of Stake (PoS)
A consensus algorthm that assigns block validation queue based on the coins/token locked in by the validator.
Gas Price
A term refers to the amount of price user is willing to pay for a transaction on Ethereum blockchain.
Block Explorer
Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
Non-custodial
It is a decentralized type-of-wallet, where the users owns its private keys.
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