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
Encryption
In cryptography, encryption is a process of encoding information the original form of information called plaintext via an algorithm called cipher. The encrypted message is now called ciphertext. Only authorized parties can decipher the ciphertext and convert back it to the original plaintext.
Proof-of-Developer (PoD)
A concept of identifying the developers of a project as a means of vouching reputation for a project
When Moon
An expression used by investors to ask when the price of a coin would hit a peak
Do Your Own Research (DYOR)
An advice for investors to do their own research on the coins they wanted to invest in
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