Proof of Importance

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.


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

Margaret Rouse is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical, business audience. Over the past twenty years her explanations have appeared on TechTarget websites and she's been cited as an authority in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine and Discovery Magazine.Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages. If you have a suggestion for a new definition or how to improve a technical explanation, please email Margaret or contact her…