Cardano ecosystem introduces Proof of Burn ( PoB ) protocol

The Iagon team recently launched the burn proof (PoB) protocol for the Cardano ecosystem. This protocol allows users to burn tokens in a censorship-resistant manner. This article will introduce the key points of this solution:

Overview of the Proof of Burn Mechanism

Burning proof essentially involves sending tokens to an inaccessible "black hole" address. This mechanism can reduce the circulating supply of tokens and can also serve as a proof of commitment to the blockchain protocol.

The security of proof of burn is based on cryptographic hash functions. By flipping the least significant bit of the output of the hash function, a black hole address can be created. Funds sent to that address will be irretrievable.

PoB Smart Contracts on the Cardano Network

Cardano smart contracts consist of three parts:

• Redeemer script: controls the spending of eUTxOs
• Wallet script: Represents the operations performed by the user
• eUTxOs: holding funds and data

The PoB protocol supports four operations: burn, verify burn, lock, and redeem. Transactions are completed in the user's wallet and then moved to the blockchain.

Smart Contract Deployment Process

Deployment steps include:

1. Install Haskell toolchain
2. Build Plutus scripts
3. Start Cardano node and wallet
4. Restore wallet and obtain wallet ID
5. Execute burn operation
6. Verify Burn Results

Wallet-based Improvement Plan

To further prevent censorship, operations can be transferred from smart contracts to wallet scripts. This way, burning can only be stopped by blocking all Cardano transactions, significantly increasing the difficulty of censorship.

The implementation method is to replace the public key hash with the hash of the commitment value and flip the least significant bit. Then use the Cardano API library to generate a valid address format.

Summary

This article introduces two implementations of the PoB protocol on Cardano: smart contracts and wallet scripts. Currently, wallet scripts are recommended, and in the future, as the infrastructure improves, more complex smart contract solutions may be adopted. The introduction of this protocol will further promote the development of the Cardano ecosystem.