Proof-of-Burn

BlockworksJun 26, 2019 ⋅ 1 min read

Written by Max Hinchman

Introduction

Proof of Burn is an alternative consensus mechanism that is promoted as less resource intensive than proof-of-work.

The Proof of Burn mechanism, popularized by Ian Stewart, is a sustainable option because it does not rely on expensive hardware like ASICs. In Proof of Burn, miners are required to send coins to a publicly verifiable address. Once the coins are sent to this particular address they are deemed useless.

The idea behind Proof of Burn is to retain the concept of investing resources in the blockchain while reducing the need to invest in external resources like excessive energy. The “burning” of coins solves this issue and also creates a level of built in scarcity for the coin. The miners in proof of burn networks will still be compensated in coins for their efforts and are expected to recoup their investments after a set period of time.

This is still a relatively new concept so the mechanism it not proven to work on large scale projects. There are also still questions regarding the transparency of the burning of coins.

Suggested Reading

Proof of Burn Explained on Binance Academy

What is a Coin Burn? Beginner’s Guide to Proof of Burn by Priyeshu Gang

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Outline
  • Introduction
  • Suggested Reading