Startup Blockstack Introduces New Algorithm For Mining BTC
Soon a new operation algorithm may appear in the Bitcoin network. The Blockstack blockchain company from the US is developing a new protocol based on the Proof-of-Burn mechanism.
The working principle of the new project called Stacks was explained by a leading developer Jude Nelson at the presentation in Hong Kong. The upcoming consensus algorithm will process blocks using Proof-of-Burn (PoB) and the current Bitcoin protocol, Proof-of-Work (PoW).
However, PoW will be applied only at the beginning in order to prevent a 51% attack. According to Nelson, the developers will later abandon this mechanism since they consider the native bitcoin network to be safe enough.
Unlike PoW, which uses electricity and computing power of the machines, the distributed PoB protocol does not consume any resources other than burned tokens. Miners should destroy their bitcoins in a provable way to get the next block. Thus, the probability of generating the next block and chances of taking the transaction fee depend on the number of burned bitcoins.
Blockchain members will receive a reward in Stacks tokens. According to Jude Nelson, blocks in the new protocol will be distributed in a random way using a “cryptographic sortition”. If the miner destroys his bitcoins and doesn’t not receive a reward, the burned coins will not be wasted — they will improve quality of the network. Also, the Stacks protocol applies burning quotas to prevent attacks.
Previously, a Hong Kong company released a GPU for mining GRIN tokens.