Ethereum: What is Proof of Burn?
Ethereum: Innovative proof of Burn Technology
In recent years, Ethereum, one of the most successful and used blockchain platforms, has incorporated a new security mechanism known as the evidence of burn (POB) in its network. In this article, we will deepen what evidence is the burn, how we work and explore what virtual currencies have adopted this innovative technology.
What is proof of burning?
Burn’s proof is a new consensus algorithm that was introduced by Ethereum in 2016 as an alternative to traditional work proof (POW). The main purpose of the POB is to achieve greater energy efficiency by maintaining the same level of security and decentralization. By burning the “burnt” chips, the validators in the Ethereum network prove that they have exhausted their coins.
What is the difference between the proof of burning and the proof of work?
To understand the fundamental differences between POB and Pow, let’s go in briefly how each consensus algorithm works:
* Proof of work (POW):
In POW, the nodes compete to solve complex mathematical puzzles, which require significant calculation power. The validators who successfully solve these puzzles are rewarded with recently mental coins.
* Proof of burning (pob): Unlike POW, POB uses a mechanism that does not require significant calculation energy. In contrast, the validators “ard” chips decreasing from their backup balance.
This process serves as an irreversible transaction registration for the Ethereum network, ensuring that transactions are resistant to handling and safe.
How to work the burning
Here is an explanation step by step on how pob works:
- Burning the token: A validator with excess coins (for example, after issuing new chips or selling the old ones) burns them by lowering the amount of their backup balance.
- Verification: The burnt token is then checked using a unique digital signature, which ensures that it was “burnt” successfully.
- Blockchain update: The burnt transaction is broadcast in the Ethereum network and is included in its blockchain.
Which virtual currency uses the proof of combustion technology instead of POW?
Several notable cryptocurrencies have adopted or intend to adopt pob:
* Ethereum (ETH): As mentioned above, Ethereum implemented POB as a substitute for POW.
* Polkadot (point): Polkadot is a decentralized platform that combines multiple blockchain networks. Uses POB as the main consensus algorithm.
* Cosmos (atom):
Cosmos, another decentralized network, adopted an POB to enhance the scalability and energy efficiency.
Conclusion
The proof of Burn technology offers several advantages over the traditional proof of working algorithms, including the low consumption of calculation energy and increased security. By incorporating the POB into the Ethereum network, the validators can prove that their coins are exhausted without requiring significant energy expenses. Although not all cryptocurrencies have adopted an POB, it is an innovative approach that has gained traction in the blockchain space.
As the use of POB continues to expand on different networks, we can expect to see more decentralized systems that implement similar security mechanisms to maintain decentralization and prevent centralization of assets.
Sources:
- Ethereum official documentation
- Polkadot Whitepaper
- Cosmos Whitepaper
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