Free Preparation Discussions
MENU
Eccouncil Exam 312-82 Topic 6 Question 5 Discussion
Topic #: 6
In this method users permanently destroy a certain quantity of bitcoin in proportion to the quantity of altcoin to be demand. What is this method?
Proof of Burn (PoB) is a consensus mechanism where users permanently destroy (or 'burn') a certain quantity of cryptocurrency, such as Bitcoin, to gain the right to mine or acquire an altcoin. This process proves commitment to the network and secures it by effectively sacrificing one asset to obtain another.
Key Details:
Burning Process: In PoB, participants send a certain amount of cryptocurrency to an unspendable address, effectively removing it from circulation. This act serves as proof that they have invested in the network by reducing the supply of the original cryptocurrency.
Purpose and Use Cases: PoB is used by networks that want to incentivize long-term commitment and reduce total supply. It is often seen in new blockchain projects that allow miners or users to trade value in established currencies like Bitcoin for the native token of the new network.
Security: By requiring participants to destroy value, PoB helps prevent spam attacks and promotes network stability.
Therefore, B. Proof of Burn is the correct answer, as it describes the method where users destroy a certain amount of cryptocurrency to receive or mine another asset.
Alishia
2 months agoBrett
12 days agoKiley
13 days agoAlesia
20 days agoJolene
2 months agoSanda
24 days agoKathrine
1 months agoAshton
1 months agoJerry
1 months agoLachelle
2 months agoLemuel
1 months agoValentin
1 months agoAngelica
1 months agoSusy
1 months agoJess
2 months agoDevorah
1 months agoGlenn
2 months agoLourdes
2 months agoValda
2 months agoKirk
2 months agoAdolph
2 months agoDalene
1 months agoParis
1 months agoMalcom
2 months agoAntione
2 months ago