Proof-of-Burn (PoB)

Proof-of-burn is a consensus mechanism that attempts in creating a system that can prevent fraudulent transactions on the blockchain network to improve the overall efficiency and the functioning of the blockchain. A blockchain is a distributed ledger that contains all the information regarding the transactions done on any of its blocks. A block is written into a blockchain network only when all the participant nodes in the network reach a consensus regarding the set of transactions that they deem fit. This task is done by the consensus mechanism of the blockchain network since the system is a decentralized one.

Proof of burn is a consensus mechanism attempting to solve the high energy consumption issue that has been plaguing the proof of work blockchains. PoB lets miners burn the digital asset to obtain the right to write blocks. Miners first need to send these to an unspendable and verified wallet address in order to burn the coins. This process does not require a lot of resources or energy.