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The Iagon team develops the PoB protocol for the Cardano ecosystem, providing an anti-censorship burning mechanism.
PoB protocol analysis
The Iagon team recently completed a challenge by developing a burn proof ( PoB ) protocol suitable for the Cardano ecosystem. This article will introduce the main content of this solution:
Burning proof is essentially sending tokens to an inaccessible "black hole" address for the purpose of token destruction. This mechanism can increase the value of the remaining tokens and also serve as a proof of commitment to the blockchain protocol. Iagon is committed to developing a censorship-resistant token burning 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. Assets sent to this address will be irretrievable.
Cardano smart contracts consist of three components: redeemer scripts, wallet scripts, and eUTxOs. The contracts can perform four operations: burn, validate burn, lock, and redeem.
The burn operation sends funds to a black hole address with a confidential hash commitment value. By using the same redeemer format, intermediaries cannot distinguish between burn and lock transactions.
The deployment steps include: installing the Haskell toolchain, building Plutus scripts, starting the Cardano node and wallet, restoring the wallet, executing burn and verifying burn operations.
To prevent censorship, a solution that only uses wallets can be adopted. This method is harder to censor because the only way is to censor all Cardano transactions.
When implementing, it is necessary to replace the public key hash with the commitment value hash and flip the least significant bit of the commitment value. The address structure and error checking mechanism of Cardano must also be considered.
Overall, the PoB protocol proposed by Iagon provides a censorship-resistant burning mechanism for the Cardano ecosystem. In the future, as the infrastructure improves, more complex smart contract solutions may emerge.