PoB (Proof of Burn)
Proof-of-Burn (PoB) is a consensus mechanism where participants intentionally destroy cryptocurrency tokens by sending them to an unspendable address. By burning tokens, participants demonstrate commitment to the network's health and consensus process. PoB reduces token supply, potentially increasing the value of remaining tokens. Validators are chosen based on their willingness to burn tokens rather than computational power or stake, promoting network participation and decentralization. PoB mitigates environmental concerns associated with Proof-of-Work (PoW) by eliminating energy-intensive mining. While offering benefits like scarcity and fairness, PoB faces challenges such as determining appropriate token burn rates and ensuring equitable validator selection.
