Consensus Algorithm //Proof of Burn//homework for @alphax by @mubashirasghar

Asslam-o-Alaikum to all my friends .I hope you will be enjoying a good health with the grace of Allah Almighty .I joined the lecture os sir @alphax in this week.I also joined the last lecture based upon holding and trading.In this lecture sir @alphax told about Consensus Algorithm in very details .I read the lecture carefully and now I am able to write my home work.
My this home work is based upon
Proof of burn.

made by me at canva

CONSENSUS ALGORITHM

Consensus algorithm is a mechanism that is taken by a block chain for the sake of an agreement and determination of the block chain network. This mechanism is used to prove the validity and the whole procedure adopted by the blockchain network, i.e., when and who will add the block? The consensus
algorithmic implantations have wide range in computer field on the basis of decentralization, security, and incentives among other parameters. Various consensus mechanism are present which are not
merely limited to Proof of work but also Proof of state, proof of capacity, proof of Elapsed Time and most commonly proof of Burn.

Proof of Burn

In the given assignment, the proof of burn is explained extensively. Proof of Burn, it’s
also a consensus mechanism that ensures the validity of a blockchain by burning coins. It’s a
beneficial substituent of the previously occurring mechanisms Proof of work and proof of capacity.

Proof of Work

For the entire description of Proof of burn, one should know about Proof of work in detail. It is because proof of burn is similar to proof of work with some exceptions that makes proof of burn more reliable and proficient than proof of work as ordinary less efficient hardware can operated
in proof of burn and little power consumption happens during this mechanism.

Basically, proof of work is the most primitive consensus mechanism, used by the bitcoin
blockchain. In this mechanism, nodes are raised to solve the cryptographic problems and whosolves the problem firstly is able to go to the next block. Though it is hard to solve problems but secure mechanism and due to its enormous requirements, such as powerful computational resources, sophisticated hard wares, and time consumption, proof of burn mechanism is used instead of it.

Version of Proof of Burn

Different version of proof of burn exists but most important was invented by Lain
Stewart. He describes the analogy of a mining ridge where the miners burn coins to have virtual mining rig. This virtual rig provides the power to block on the block chain and its size depends upon the coins burn.

Principle

The main principle of proof of burning is, “miners burn cryptocurrency coins and get right
to mine blocks on the blockchain.” The block implementation is proportional to the coins burnt. The burning concept is explained as considering a particular portion of a coin in demand to be sent to a wallet nobody has access to it. When coins are consumed, these coins are no more use as they are out
of circulation, and cause a tremendous effect on significant value of coin.

Mining of blocks in term of mining power

Mining of the block depends upon the mining power which is accompanied by burning
tokens. But this is not one time investment because mining power reduces as well new blocks are formed as this is inversely proportional to it. This reduction of mining power as a result of mining block is referred as decay.

Burning activity provides strength as well as power to the network due to this reason
miners are appreciated for their activities. These tasks remain continuous as miners can mine on top of each other’s blocks.

Advantages of Proof of Burning

Proof of burn is much more effective as compare to the other consensus mechanisms
because of less time and energy consumption, no need of powerful hard wares or powerful
computational reserves. It reduces problems like temporary price swings, which is connected to investment in mining hard wares. Proof of burn is also used in bootstrapping of one cryptocurrency off pf another cryptocurrency.

Disadvantages of Proof of Burning

Like its advantages, it also has disadvantages. Proof of Stake and Proof of Work are
more common than it. Even mentioned mechanisms are also implemented by popular slim coin.

Conclusion

In a nut shell, as Proof of Burn has more efficiency than other proof mechanisms of
consensus algorithms so into the coming years, there is a high chance that many block chains will adopt this mechanism.

Thanks for reading my post

Thanks to beloved :

@alphax

Best Regard:

@mubashirasghar