Proof-of-work, Proof-of-stake, Proof-of-space, Proof-of-time and now Proof-of-burn. Each algorithm achieve consensus, its characteristics, advantages and disadvantages, but today we will tell only about the most recent of them — a Proof-of-burn.
The algorithm for achieving consensus, helps to determine the gcd, which includes confirmation placed in a transaction block. PoS-the algorithm will choose a more powerful node, PoW-algorithm — node with more power, Proof-of-space node with the largest storage space. Proof-of-burn does not involve the destruction of coins.
Why to mine and destroy coins unless you are acne Buterin. You probably remember that by destroying the excess coins Buterin proposed to regulate the demand for Air. But now not about it. Proof-of-burn for the first time used to create Slimcoin cryptocurrency. The miner sends a part of the earned coins to burn address — bitcoin wallet which will not be able to bring them back. Hence the name of the principle.
The more coins “burns” node, the higher are the chances for confirmation of the next block. The memory of this tricky system bad: it constantly reduces the statistics listed coins, so the “burn” assets in order to be eligible confirmation of blocks, you need to regularly. The concept suggests that even getting rid of part of the coin, the miner is planning a long-term service PoB network will make a profit.
The new algorithm requires no special equipment: mine, you (as in the first years of the existence of Bitcoin) on a home computer. Energy consumption in this way, network maintenance is minimal. Yay!