Proof of Importance
Proof of Importance (PoI) is a blockchain consensus mechanism that rewards users for their contributions to the network, such as transacting, vesting, and multi-signature account management. It is a modification of the Proof of Stake (PoS) consensus mechanism, but it takes into account additional factors, such as the amount of time that users have been holding their coins and the number of transactions that they have made.
PoI is designed to be more energy-efficient and secure than other consensus mechanisms, such as Proof of Work (PoW). It is also designed to be more fair and equitable, as it rewards users for their contributions to the network, rather than for their computing power.
PoI is currently used by a number of blockchain platforms, including NEM and Symbol.
Here is a simplified explanation of how PoI works:
- Vesting: Users must vest their coins for a certain period of time in order to be eligible to harvest blocks. This helps to ensure that users are committed to the network and that they are not simply trying to make a quick profit.
- Transaction activity: Users are rewarded for making transactions. This helps to promote the use of the network and to keep the blockchain active.
- Multi-signature accounts: Users are rewarded for managing multi-signature accounts. This helps to improve the security of the network and to make it more difficult for attackers to steal funds.
The importance score (PoI Score) of each user is calculated based on their vesting, transaction activity, and multi-signature account management. Users with higher importance scores have a greater chance of being selected to harvest blocks and receive rewards.
PoI is a relatively new consensus mechanism, but it has the potential to revolutionize the way that blockchains are secured and governed.
