Proof of Importance

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What Does Proof of Importance Mean?

Proof of importance (PoI) is a cryptocurrency term defined as a blockchain consensus technique – essentially, proof of importance works to prove the utility of nodes in a cryptocurrency system, so that they can create blocks.

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Techopedia Explains Proof of Importance

In some ways, the proof of importance mechanism is similar to proof of stake, another technique involving showing the relations of parties to a transaction, but while there are similarities, proof importance uses other various metrics in order to evaluate nodes. These metrics include net transfers, amount of vested currency, and activity clusters – in one sense, the development of proof of importance is intended to address loopholes and problems with proof of stake where hoarding or other behavior could result in a higher proof of stake score, but the proof of importance score with its more sophisticated measurements seeks to find better outcomes.

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Margaret Rouse
Technology expert
Margaret Rouse
Technology expert

Margaret is an award-winning writer and educator known for her ability to explain complex technical topics to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles in the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret’s idea of ​​a fun day is to help IT and business professionals to learn to speak each other’s highly specialized languages.