Proof of Importance (PoI) Definition - Glossary

Proof of Importance (PoI) is a consensus mechanism prioritizing network contributions for transaction validation, promoting active participation and trust.

Proof of Importance (PoI) is a consensus algorithm used primarily in the NEM blockchain. It determines the importance of each account based on its activity and contributions to the network. Unlike Proof of Work or Proof of Stake, PoI considers factors like transaction history and account balance. This incentivizes users to engage actively, not just hold assets. By doing so, PoI promotes a more decentralized and engaged network. It encourages users to participate in securing the network by rewarding meaningful contributions rather than mere wealth accumulation.