GlossaryAdvanced
Proof of Burn
A consensus mechanism where participants permanently destroy coins to earn the right to validate.
Proof of burn is a consensus mechanism in which participants permanently and verifiably destroy ("burn") coins, generally to earn a right to mine or validate future blocks, intended as an alternative to proof of work's ongoing energy expenditure.
It has seen far more limited real-world adoption than proof of work or proof of stake.
Examples
- A proof-of-burn network might require destroying an existing coin to earn mining rights on a new chain.
- Proof of burn is a less commonly used consensus mechanism compared to proof of work or proof of stake.