Proof of Burn: Definition to Pros and Cons

Proof of Burn

The consensus algorithm used by most blockchain systems is PoW (Proof of Work) or PoS (Proof of Stake). Meanwhile PoB (Proof of Burn) is being tested as another possible alternative.

What is Proof of Burn?

For those of you who are interested in the world of cryptocurrency, the term Proof of Burn may not be a foreign thing. Proof of Burn is one of several consensus mechanism algorithms that blockchain networks can implement.

This algorithm is implemented to ensure that all participating nodes reach an agreement on a valid and appropriate state of the blockchain network. This algorithm is also implemented to avoid possible double spending on cryptocurrency coins.

PoB technology is often referred to as a Proof of Work system without wasting energy. This algorithm operates on the principle of allowing miners to “burn” virtual currency tokens. They are then given the right to write blocks according to the number of coins burned.

In order to burn coins, you need to send them to a completely unspendable address. This process doesn’t eat up a lot of resources (other than the coins burned itself) and ensures that the network stays agile and active.

Miners are allowed to burn either native currency or alternative chain currency such as Bitcoin, depending on the implementation. You will receive rewards in the native currency tokens of the blockchain instead.

How Proof of Burn Works

The process of burning coins (Proof of Burn) consists of sending them to a verifiable public address where they become inaccessible and useless. Generally these addresses are randomly generated without having a private key associated with them.

The process of burning coins is known to reduce market availability and create economic scarcity, thereby potentially increasing their value.

Quite similar to the Proof of Work blockchain, the system in this technology will reward miners in the form of blocks within a certain period of time. The prize is expected to cover the initial investment of coins that have been burned.

Example of Proof of Burn

Proof of Burn implementation can be customized, for example for Slimcoin. Slimcoin is a virtual currency network that uses Proof of Burn. This allows miners to burn coins which gives them the right to compete for the next block and gives the opportunity to receive blocks over a longer period of time.

Basically, the implementation of Proof of Burn on Slimcoin is carried out by combining three algorithms at once, namely Proof of Work, Proof of Stake, and the core concept of Proof of Burn.

The coin burning process uses Proof of Work. The more coins burned, the more opportunities to mine, thus ensuring Proof of Stake and the entire ecosystem they use follows the Proof of Burn concept.


You can make the advantages listed in this article as a reference or reference, but don’t take them as suggestions that are definitely proven, because they are only based on general arguments. There is still controversy about the argument, so it requires further testing so that it can be confirmed as valid or invalid information.

The advantages or pros possessed by PoB coin burning are virtual mining rigs where coin mining is known to reduce the supply in circulation. Proof of Burn is also considered to be able to trigger long-term commitment by miners.


As with the advantages, you can use the disadvantages written in this article as a reference or reference, but they should not be considered as suggestions that are definitely proven. There is still controversy regarding this argument, so it requires further testing so that it can be confirmed as valid or invalid information.

Some say that PoB is not proven to work on a larger scale. Therefore, more tests are needed to confirm the efficiency and safety of the PoB itself.

In addition, the verification of work performed by miners tends to be delayed. The verification here is not as fast as in the Proof of Work blockchain. Some arguments also reveal that the process of burning coins is not always transparent or easy to track for the average user.

Comparison of PoB and PoS

What PoB and PoS have in common is the fact that block validators must invest their coins to participate in the consensus mechanism. However, PoS blockchains require forgers to stake their coins.

If they decide to leave the network, they may take the coins back and sell them on the market. Therefore, there is no permanent market scarcity in such a scenario as coins are only taken out of circulation within a certain time frame.

On the other hand, Proof of Burn block validators exist to destroy their coin forever, thus creating a permanent economic scarcity.


Muhammad Zaki Fajrul Haq
Author: Muhammad Zaki Fajrul Haq

Follow me at @mzfajrulhaq (Instagram) or @ZakiFajrul (Twitter).

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