Crypto Academy Week 13 Homework Post For @alphafx - Consensus Algorithms

On this occasion I will try to answer questions from the homework given by professor @alphafx, as for this week's class related to the Algotithms Consensus, while I will choose one of the homework given. Well I will discuss about "Proof of Burn".

Proof Of Burn

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In validating and verifying transactions the consensus algorithm is very important to keep the network safe. One part of the consensus algorithm is proof of burn. Proof of Burn can be said to be an alternative distributed consensus on a blockchain network that has a working mechanism, namely burning certain crypto units by burning a coin, so that these crypto units can no longer be transacted. These are all ideas of Iain Stewart.

Iain Stewart came up with the idea in Proof Of Burn with the aim of minimizing energy use. As we know from the explanation above, the Mechanism of the Proof of Burn for burning crypto units. This process was carried out in order to reduce the market supply so that it could potentially increase the selling value of the coin. The Proof of Burn mechanism fits perfectly with the objectives of the consensus algorithm because burning a coin is one way to keep a network safe.

How Proof of Burn Works

In terms of burning or burning a coin from Proof of Burn it is actually done by sending it to a special address, that address is used as a storage place for a coin that is sent. The address is called the Bitcoin Eater Address. This address cannot be used and accessed by anyone.

Crypto coins that have been burned will be stored at a special address on the blockchain system forever. So it can be said that this mechanism makes the coins unusable. So Proof of Burn is like a special script that to make a coin cannot be transacted and used anymore.

Projects That Use Proof of Burn

• Zcoin, is one of the coins that uses proof of burn. The purpose of burning coins is to increase security in the network. This can help the level of security from outside the network, namely the zero knowledge proof mechanism

• Factom, is one of the coins that uses proof of burn with a mechanism similar to that of Zcoin. The factom mechanism in conducting Proof of Burn is to burn and re-create coins.

• Slimcoin, is one of the coins that uses proof of burn with a mechanism that is slightly different from the concept, because what is burned is the reward of miners who mine on a blockchain network. This is all done to provide security for the number of crypto units that are used as a share in mining.

Advantages Proof of Burn

• Proof of burn reduces the market share of cryptocurrency and thus increases the cryptocurrency price.

• There is no need to provide mining equipment, as coin burning is done virtually, it saves upfront capital and costs when mining.

• Consumes little energy so it is very efficient when mining.

Disadvantages Proof of Burn

• Proof of burn is not very popular yet, so proof of burn is currently conducting several experiments to improve its safety and efficiency of its working mechanism, in order to compete with the advantages it provides.

• The burning of a coin on the proof of burn mechanism is not carried out in a transparent manner, thus complicating the verification process for lay users who have just started the mining process.

• Compared to proof of work, the proof of burn verification process is slower

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That's all I can explain in homework this week. I hope it's easy to understand

CC : @alphafx
CC : @steemcurator02