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Title: What is Proof of Burn Post by: tdumdiu on April 01, 2014, 12:43:22 PM Can someone explain me
1. What is Proof of Burn. 2. What is the difference between Proof of Burn and Proof of Work. 3. How Proof of burn works 4. Which virtual currency uses Proof of burn technology instead of Proof of Work Pls can someone explain me these things in a understandable manner? I can't understand anything in the Wiki article (https://en.bitcoin.it/wiki/Proof_of_burn). I'm in struggle understanding the Proof of Burn. Highly appreciate if someone can explain this to me. Thanks. Title: Re: What is Proof of Burn Post by: Wipeout2097 on April 01, 2014, 07:19:03 PM It's a fancy name, made up to cover outright stupidity.
Some dudes sent Bitcoin to an unrecoverable address https://blockchain.info/address/1CounterpartyXXXXXXXXXXXXXXXUWLpVr , and in return got some XCP (Counterparty coin). Around 1.2 million USD worth of Bitcoins were destroyed with this experiment. Title: Re: What is Proof of Burn Post by: VirosaGITS on April 01, 2014, 10:24:47 PM It's a fancy name, made up to cover outright stupidity. Some dudes sent Bitcoin to an unrecoverable address https://blockchain.info/address/1CounterpartyXXXXXXXXXXXXXXXUWLpVr , and in return got some XCP (Counterparty coin). Around 1.2 million USD worth of Bitcoins were destroyed with this experiment. On the bright side, it increases rarity... and i've seen thousands time more expensive experiment that were just about as thought out as this. Title: Re: What is Proof of Burn Post by: STT on April 02, 2014, 02:09:26 AM Wow thats impressively pointless. Creative destruction or just confusion. Reminds me of a 'real world' event from many years ago:
http://en.wikipedia.org/wiki/K_Foundation_Burn_a_Million_Quid Quote all that matters is that an individual miner finds the task expensive How about utility, a transaction that aids comparative advantage is a good idea but work for the sake of it is what I originally thought btc did and why I thought it was junk Quote This has the nice consequence that, if people throughout the broader economy are gradually deserting oldcoin (as newcoin catches on), its value need not collapse! Instead, oldcoin gets burnt in the transition process, neatly reducing its nominal supply in just such a way as to roughly keep pace with its declining real demand Yep, so when K_Foundation set fire to a pile of bank notes. They didnt destroy value, they removed it from their own control. I believe value was distributed to various holders of sterling. So when they destroy btc, I'd like to think the pointless act is merely redirecting value to the remainder holders and they'll have more sense, if anything I think it helps a coin to remove foolish actors in its ranks Title: Re: What is Proof of Burn Post by: tdumdiu on April 09, 2014, 05:16:07 AM Thanks alot for all of you :) :) :)
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