Proof of Burn

As an alternate expenditure to computing power, PoB, in fact, destroys a certain number of bitcoins to get equivalent altcoins. This is commonly used when starting up a new coin projects as a means to provide a fair initial distribution. This can be considered an alternative mining scheme where the value of the new coins comes from the fact that previously a certain number of coins have been destroyed.

Get Mastering Blockchain - Second Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.