Subscribe To Our Daily Newsletter
Keep Up To Date With The Latest Crypto News

Proof-of-Burn (PoB)

Por CoinGecko | Atualização: 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

Share this with a friend!

Related Terms

YTD
Acronym for Year-to-date
ERC-20
ERC-20 is one of the most widely used token standards in Ethereum to create fungible, exchangeable tokens.
Microtransaction
Microtransaction is a system that made very small payments possible in buying the common digital goods and services, such as purchasing items in a game.
Option
It is a financial instruments that refers to a contract offers the buyer the right to buy or sell an underlying assets at a specified price and time.
Ainda não saciou o seu apetite de conhecimento?
Voltar a /pt/glossary ou https://newsletter.coingecko.com/landing/subscribe o nosso boletim informativo.
coingecko (thumbnail mini)
CoinGecko para iOS
coingecko (thumbnail mini)
CoinGecko para Android