Proof of Burn (PoB)
Also known as: Token Burn Consensus, PoB Mining, Destruction-Based Validation
A consensus mechanism where participants destroy tokens to gain the right to mine or validate new blocks.
Proof of Burn (PoB) is a blockchain consensus algorithm where participants permanently destroy (burn) cryptocurrency tokens as a way to earn the right to validate transactions or mine new blocks. The act of burning proves a long-term commitment to the network by sacrificing short-term value. Burned tokens are sent to verifiable unspendable addresses. PoB is energy-efficient compared to Proof of Work and is considered a form of 'virtual mining.' It has been explored by projects like Slimcoin and Counterparty, but remains a niche mechanism in the broader ecosystem.