Proof of Burn (PoB)

🔥 Proof of Burn (PoB) — Consensus Algorithm

Ono Coin uses a custom Proof of Burn (PoB) mechanism for block generation and network consensus. Unlike Proof of Work (PoW) or Proof of Stake (PoS), Proof of Burn requires participants to "burn" (destroy) coins to gain the right to forge new blocks and earn rewards.

This approach aligns incentives around long-term commitment to the network, as burned coins represent a stake in the system.

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🧠 How Proof of Burn Works in Ono Coin

✅ 1. Burn Coins to Become a Forger

• To participate in block forging, users must burn Ono Coins, effectively removing them from circulation.

• The more coins burned, the higher chance to forge the next block.

• Burned coins are tracked on-chain and connected to a user's public key.

💡 Note: You can burn coins using wallet commands (coming soon) or via API.

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✅ 2. Calculating the Chance to Forge — "Target" and "Hit"

Ono Coin calculates a Target and a Hit value for each forging attempt. If Hit > Target, the forger wins and can create the next block.

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🔢 How "Target" is Calculated

The Target is a random-like value generated from the previous block's signature and the candidate's public key:

const signatureWithPublicKey = latestBlock.signature + publicKey;
const hash = cryptoUtilsLib.hash(signatureWithPublicKey);
const target = parseInt(hash.substring(0, 9), 16);

• Deterministic but unpredictable until the last block is known.

• Ensures fairness and randomness in the selection process.

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🔢 How "Hit" is Calculated

The Hit measures the forger's "weight" and time since the last block:

const forgerBalance = await balanceService.getBurnedBalance(publicKey, latestBlock.id);
if (forgerBalance < BLOCKCHAIN_SETTINGS.MIN_FORGER_BALANCE) return 0;

const elapsedTime = timestamp - latestBlock.timestamp;
const hit = previousTarget * forgerBalance * elapsedTime;

• Depends on:

  • Amount of coins burned (burned balance).

  • Time elapsed since the last block.

  • Previous block's target (difficulty adjustment).

• The more coins burned and the longer the wait, the higher the Hit — increasing the chance to forge.

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✅ 3. Verifying If a Block Can Be Forged

To verify if a forger is eligible to create a block:

return target < hit;

• If Hit > Target, the forger wins the right to create the next block.

• This mechanism ensures fair competition among burners and prevents low-stake actors from dominating the chain.

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⚙️ Technical Flow Summary

Step	Description
Burn coins	Lock and remove coins to gain forging rights.
Calculate Target	Hash of last block's signature and public key.
Calculate Hit	Depends on burned balance, elapsed time, and previous target.
Compare Hit vs Target	If Hit > Target, the user can forge a block.

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🔒 Security and Fairness

• No mining farms: Since the system doesn't rely on hardware, it's eco-friendly.

• Long-term commitment: Only users who burn coins (invest in the network) can forge blocks.

• Fair randomness: Target calculation ensures unpredictable and fair block selection.

• Burned balance: Tied to public key, cannot be transferred or sold, representing real commitment.

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💡 Benefits of Ono Coin's PoB

• ✅ Eco-friendly — No need for expensive hardware or energy consumption.

• ✅ Decentralized — Anyone can participate by burning coins.

• ✅ Fair — Larger burned balance and longer waiting period increases chances naturally.

• ✅ Simple and effective — Transparent algorithm that is easy to verify on-chain.

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🎉 Conclusion

Ono Coin's Proof of Burn combines fairness, simplicity, and eco-friendliness to ensure secure and decentralized block forging. By burning coins, you prove your commitment to the network and earn the right to forge new blocks.

🔥 Burn to earn — forge to grow. Welcome to Ono Coin!