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.
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.
Share this Term
Tech moves fast! Stay ahead of the curve with Techopedia!
Join nearly 200,000 subscribers who receive actionable tech insights from Techopedia.
Latest Articles
By: Brad Rudisail | Contributor
By: Claudio Buttice | Data Researcher, Contributor
By: Amy Parker | Technology Consultant
By: Claudio Buttice | Data Researcher, Contributor
