Hi friends, hope you all are fine. I have just completed the new week lecture post by professor @alphafx, he has explained consensus algorithms which are one of the pillars of any blockchains.
I have learned about Proof of Work(PoW), Proof of Stack(PoS), Delegated Proof of Stake(DPoS), and Proof of Brain(PoB) consensus algorithms in-depth and now I'm going to write a homework post hope this will help others to learn more about consensus algorithms.
Proof of Burn (PoB)
Proof of Burn (PoB) is a consensus mechanism which in miners have to burn coins to write a block, it's so simple more the miner burns coins the more chances of getting to write a block, its algorithm is also called Proof of Work(PoW) without energy waste. In this consensus algorithm, it depends on the blockchain which type of coin/token you have to burn to gain block writing access like you have to burn Bitcoin(BTC) sending to unusable address mostly it's zero address by which you can get chances of writing blocks and you get will native token in reward of block writing.
In Proof of Burn(PoB) mining power is dependent on how much a particular miner is burning coins, like the higher the miner burn coins the higher miner will get power to mine blocks.
Proof of Burn(PoB) is a consensus mechanism invent to remove the resource usages as we have learned in the lecture Proof of Work(PoW) is using computation power to solve puzzles.
Proof of Burn in simple steps:
Transactions are trigger by users.
Transactions are grouped into a transaction pool from where miners get transactions to verify and create a block.
Miner has to burn coins to win this block creating access.
If a miner burns more coins than others that miner wins that particular bock creating.
Miner have verified all transaction and created block.
Block is successfully added to Blockchain miner will get block mining reward in set address.
PROOF OF WORK VS PROOF OF BURN
|Miner has to utilize their computational resources to solve the puzzle to mine a block||Miner have to burn coins to mine a block|
|PoW consumes higher electric power||PoB minimizes the uses of electric power consumption.|
|The higher resources the higher chances to mine a block||The higher the burn the higher chances to mine a block.|
PROOF OF STACK VS PROOF OF BURN
|Miner has to stake an amount of coin to win block validation.||Miner has to burn the number of coins to win block validation.|
|Miner has just staked their coins they can unstake after a period of time||Miner has to burn means no more access to those coins after burning.|
|Do not reduce circulation supply||Reduce the circulation supply by burning.|
Advantages of Proof of Burn(PoB):
- Do not require mining rigs for mining.
- Reduce power consumption.
- Reduce the circulating supply of coins by burning creating scarcity.
Disadvantages of Proof of Burn(PoB):
- Not implemented by many blockchains like POW and POS.
- Need more testing this consensus is not stable yet.
I hope you all understand about the Proof of Burn consensus mechanism and now you can differentiate between PoB, PoW, and POS in depth there are many more consensus algorithms that are coming day by day because high demand for blockchain we need better and better solutions to maximize the efficiency of Blockchain technology.