What is Proof-of-Burn?

Proof-of-Burn is an innovative solution to proof-of-stake mining. Unlike proof-of-work such as proof-of-gas and proof-of-swap, proof-of-burn offers the possibility of unlimited potential supply of electricity. By making the decision to burn blocks of tokens, users reduce the overall energy usage in that not every token is produced at the same time. As proof-of-burn is based on a hybrid consensus system with low energy usage, it is a greener solution for proof-of-stake.

Proof-of-Burn is a decentralized consensus system utilizing low-energy burning coins as the proof of work, rather than searching for proofs of work using scarce CPU resources. Unspendable proof-of-burn can be created by anyone on the network by burning a spendable coin. Proof-of-burn is different from proof-of-sweat because with proof-of-burn, users determine the value of their own computer by directly creating the burnable coin, rather than searching the entire network for a proof of work. Proof-of-burn addresses the economic problem posed by proof-of-sweat. Proof-of-stake results in high transaction fees that are not required if proof-of-burn was implemented. Proof-of-burn avoids this problem because there is no pre-determined amount of proof required for a successful transaction.

Proof-of-burn is similar to Proof-of-stake, except it is more efficient and does not need to compromise the security of the blockchain. Proof-of-burn works similarly to Proof-of-space, except that with Proof-of-Burn, proof of work is not required. Proof-of-stake creates an economic incentive to create new blocks without the expense of proof-of-burn. Proof-of-stake is like a proof-of-space, but with considerably less risk.