Topic: What is Coin Burning - page 2. (Read 2440 times)
Coin burning is actually called proof of burn. Proof of burn is a protocol used by various altcoins to reduce the current available supply, whereby a specific portion of coins in circulation is sent to a wallet no one has access to (This is mainly used in ICOs). This eliminates these coins from being spendable, although they will remain to be a part of all of the existing coins ever to be generated. Proof of Burn transactions are also recorded on that cryptocurrency’s blockchain, providing proof that the coins would never be used to transact again.
I don't really see why people would use this in bitcoin
There are some coins that do a "Proof of Burn" where you must burn Bitcoin in order to mine (or something like that) on the altcoin. Can someone explain what is coin burning and what is the purpose of it?
It means you sent bitcoin to a bitcoin adress that has no known private key. Which means they will be "burned" / go to waste.
I don't really see why people would use this in bitcoin, but i know that some altcoin developers have done this to reduce the amount of coins in circulation
As to how to make a bitcoin vanity burner adress, use the answer on this question, https://bitcoin.stackexchange.com/questions/1851/how-to-generate-a-valid-bitcoin-address-for-destroying-bitcoins
Might be a bit outdated but it should still work.
Can someone explain what is coin burning and what is the purpose of it?
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