SteemitCryptoAcademy: Consensus Algorithms@ alphafx || Proof of Burn

Introduction

The crypto academy has been a place to learn, thanks to the Steemit team and the lecturers who have been imparting knowledge all long. Attending @alphafx class has been immensely wonderful, learning from the streams of knowledge he shared in his post and I will be participating in the assignment "Proof of Burn".

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Proof of burn explained

Different consensus algorithms nowadays are being used in blockchain projects, Bitcoin being the first cryptocurrency makes use of the proof of work as well as another consensus. Ever since the invention of Bitcoin which happens to be the first cryptocurrency, a lot of consensuses are being implemented into the cryptocurrency and blockchain world. Proof of burn happens to be a part of this new consensus protocol with the main objective of mining virtually without the use of a complicated computing mining rig.

Proof of Burn was initiated by Lain Stewart, he made the idea public in December 2012 and announced the idea on the Bitcointalk forum. He explained that burning coins worked just like a rig where mining occurs giving full access to the miners to mine blocks using a virtual mining rig.

By making use of proof of burn, miners are granted their right to mine at any period of time. There is another consensus like Proof of Work which has been in use before the introduction of Proof of burn but this serves as another alternative that is smaller than all other algorithms.

Energy consumption seems to be the main reason why there is a stand up against cryptocurrency but with the invention of proof of burn algorithms, there has been a reduction in the excess energy consumption and now a lower or reduced energy is needed to perform any transaction on the blockchain and cryptocurrency network.

When using proof of burn miners have the ability to make mining efforts on their own giving them the opportunity to mine on any cryptocurrency platform hereby given them the chance to increase miners’ loyalty to the network. Transactions on the network are then verified by miners because they have to mine using their own virtual mining rig.

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How does proof of burn works?

To make sure proof of burning occurs, mined coins are sent to public addresses (eater address) and the coins are rendered useless and inaccessible, making the whole network functional and easy to access. Rewards are given to the miners as a result of their mining power and time taken to mine. And mining doesn’t stop only on but can mine on other networks too such as Bitcoin and Ethereum.

Most addresses where this miners sends their cryptocurrency are not controlled by the miner or cryptocurrency itself because it doesn’t have a security key or mnemonic keys to back them up. And this gives the miner the possibility to burn as many crypto money he or she wants due to a no limit in its demand and supply.

In other to have a change in demand and supply, the cryptocurrency number will be minimized while its crypto money will have an increase in its price money giving miners the accessibility to mine more cryptocurrency as long as he or she have enough time to mine. There is also an increase in network security.

Proof of burn vs proof of stake

In other to take part In the bitcoin consensus mechanism, each participants have to invest a certain number of coin in other to validate its block and this occur mainly in Proof of burn and proof of stake meaning they both share the same purpose. But proof of stake believe the forgers had to make sure they know whether to stay on the platform forever or just be a part of it hereby causing market scarcity also leading to economic coins scarcity.

Proof of work in respect to proof of burn algorithms

As to make sure there is enough and strong security when mining, miners had to use more energy than the normal that its needed when making a transaction which also consume more resources creating a competitive environment among them.

But miner don’t need to consume or use additional energy when making use of proof of burn algorithms because the algorithms already taken charge but in this process more Cryptocurrencies are burned and also striving in other to make the network secure.

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Advantages of proof of burn

• The protocol is eco-friendly with the environment and also doesn’t require too much of energy to mine.
• There is an increase in crypto money but a decrease in the cryptocurrency burning.
• There is adequate security network and stability of mining power
• Miners loyalty increases due to the number of profit a miner gets
• It saves the miner from additional cost and doesn’t require mining equipment.

Disadvantages of proof of burn

• It gives access to other cryptocurrency to share its token among the cryptocurrency blockchain.
• Average users doesn’t have what it takes to get easy verification when using proof of burning and doesn’t have transparency.
• Verifications done using proof of burn is way slower than proof of work because there is delay in mining verification
• There is no sure security measure for the POB and haven’t been tested enough to confirm its efficiency.