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      "body": "![774897F1-98E5-425C-BBAD-C6BE0E322179.png](https://cdn.steemitimages.com/DQmSyy6fnRCvSxhWKtdHdDgKHQjnGuta1uoYUxdNWSsarab/774897F1-98E5-425C-BBAD-C6BE0E322179.png)\n[Source](https://blog.teamsatchel.com/research-into-the-importance-of-homework)\n\nHello community. How are you all? I hope everyone’s doing great. Let’s start with today’s homework. \n\n#### Assignment\n###### Write on any of these consensus algorithms extensively\n\n- Stellar Consensus Protocol\n- Proof of Capacity\n- Proof of Burn\n- Proof of Elapsed Time\n\n#### Let’s first talk about Consensus Algorithm.\n\nFrom the lecture of @alphafx, I learned that the Consensus Algorithm is a collection of well-implemented codes used by nodes to ensure data integrity in the blockchain. This algorithm is used to keep the nodes in check by confirming transactions, creating and confirming blocks, and keeping the nodes in check. It also functions as a node incentive scheme. \n\n#### What is Proof-of-Burn (PoB)?\n\n\n![56405A22-7386-4987-B916-2EDC27D20C61.jpeg](https://cdn.steemitimages.com/DQmWo7YkRjWViCbyJUho14gTDMhxh3hEMbrAfX35f1ddDBw/56405A22-7386-4987-B916-2EDC27D20C61.jpeg)\n[Source](https://cryptoheroes.ch/stacks-plans-to-burn-bitcoin-via-pob-mechanism/)\n\n\nIt is a blockchain consensus mechanism. Compared to Proof of Work (PoW), PoB consumes the energy way less. The inventor of the Proof of Brain algorithm is Ian Stewart. There are many variants of the PoB algorithm, but Ian Stewart's version is the most common.\n\nProof of burn is not very common. Not a lot of people use this method. It is an alternative to the proof of work. As I mentioned up, in proof of burn the consumption of energy is very low compared to proof of work. No devices or mining equipment is needed for the approval phase of blocks in PoB consensus algorithms. Rather, previously created cryptocurrencies are purposefully burned in order to invest some kind of resource in the blockchain.\n\nMiners are given the ability to write blocks in proportion to the amount of coins they have burned.\n\n###### “ Iain Stewart, the inventor of the POB algorithm, uses an analogy to describe the algorithm: burnt coins are like mining rigs. In this analogy, a miner burns their coins to buy a virtual mining rig that gives them the power to mine blocks. The more coins burned by the miner, the bigger their virtual mining \"rig\" will be.” \n[Reference](https://www.investopedia.com/terms/p/proof-burn-cryptocurrency.asp)\n\nBurning the cryptocurrency is just like investing the resources in the blockchain for the miners. Miners earn the right to mine and verify transactions by burning the coins. This is how miners show their commitment to the network. \n\n#### How does Proof of Burn work? \n\nCryptocurrencies are sent to a public verifiably address and there they are of no use, they become useless and inaccessible. These addresses have no private keys and they generate them randomly. When miners burn the coins, it is just like they are investing in the security of the network. Burning the coins increases its potential value and also it decreases market availability by creating scarcity in the economy. \n\nThe investment made by coin burning is supposed to be the only thing that secures PoB blockchains.\n\nBlock rewards will be provided to miners in PoB networks, and the rewards are required to compensate the initial expenditure of the burned coins within a certain amount of time.\n\n#### Advantages of Proof of Burn\n\n- Less Energy Consumption \n- No devices or mining equipment needed.\n- persuades long-term commitment by the miners\n- Mining of the coins is less centralised \n\n#### Disadvantages of Proof of Burn\n\n- Not really eco-friendly according to some people. \n- Work on Small scale \n- Slow compared to Proof of Work blockchains.\n- Burning coins process is not always transparent. \n\n#### That’s all from my side. Thank you.",
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