“… Proof of burn
With proof of burn, instead of pouring money into expensive computer equipment, you ‘burn’ coins by sending them to an address where they are irretrievable. By committing your coins to never-never land, you earn a lifetime privilege to mine on the system based on a random selection process.
Depending on how proof of burn is implemented, miners may burn the native currency or the currency of an alternative chain, like bitcoin. The more coins you burn, the better chance you have of being selected to mine the next block.
Over time, your stake in the system decays, so eventually you will want to burn more coins to increase your odds of being selected in the lottery. (This mimics bitcoin’s mining process, where you have to continually invest in more modern computing equipment to maintain hashing power.)
While proof of burn is an interesting alternative to proof of work, the protocol still wastes resources needlessly. Another criticism is that mining power simply goes to those who are willing to burn more money.
The only coin that uses proof of burn is slimcoin, a cryptocurrency based on peercoin. It uses a combination of proof of work, proof of stake and proof of burn, but is only semi-active at this time. …”
Published at Fri, 10 Mar 2017 20:06:45 +0000
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