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.