What Is the Concept of “Proof-of-Burn” as an Alternative Consensus Mechanism?
Proof-of-Burn (PoB) is a consensus mechanism where participants "burn" (permanently destroy) a certain amount of the native cryptocurrency to gain the right to mine a block. By sacrificing a scarce resource, participants show a long-term commitment to the network.
The more coins burned, the higher the chance of being selected to mine the next block. It is a creative way to simulate the resource expenditure of PoW without the massive energy consumption.
Glossar
Alternative Consensus
Concept ⎊ An Alternative Consensus refers to a non-standard or emergent agreement mechanism within a decentralized network, diverging from the primary protocol's established validation structure, often explored in the context of scaling solutions or specialized blockchain applications relevant to derivatives settlement.
Proof-Of-Burn
Burn ⎊ The core mechanism underpinning Proof-Of-Burn (PoB) involves intentionally destroying, or "burning," cryptocurrency tokens to demonstrate commitment and earn rewards.