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Meaning of proof of burn | Babel Free

Noun CEFR C1

Definitions

A process for verification on a blockchain that requires the destruction (“burning”) of tokens.

Examples

“Proof of burn is used to destroy (burn) coins. To burn bitcoins means to send those bitcoins to a verifiable yet nonspendable address.”

“The third approach to ensure the integrity of a blockchain is proof of burn, first used by Counterparty. The Counterparty tokens, XCP, were distributed proportionally to everyone who destroyed bitcoins by sending them to an unrecoverable address during the proof-of-burn period in January 2014, see counterparty.io.”

CEFR level

C1

Advanced
This word is part of the CEFR C1 vocabulary — advanced level.

See also

proof of concept proof of delivery proof of life proof of payment proof of purchase proof of stake