What is POI?

POI is an abbreviation for Proof of Importance and it’s another algorithm involved with cryptocurrency, most notably a currency called NEM. POI is important for monitoring the cryptocurrency’s ecosystem. It records the times of transactions and uses the NCDawareRank network to measure centrality, transaction graph topology, and other information to help reach a consensus.

POI differs from other algorithms because it utilizes a fee-sharing model. Normally, a user needs a large number of Bitcoins or other cryptocurrencies to produce a new block; but with NEM transactions, the most important factors are trust and volume. The intention with NEM is to encourage users to not just hold XEM (the name of the coin) but to also make transactions with it.

POI helps NEM to avoid being manipulated. The technology repels Loop and Sybil attacks, but it’s also important to remember that proof of stake and proof of importance are two distinct and separate things, although they share similarities. In essence, Proof of Importance is an approach that supports the efficient functioning of the NEM ecosystem.

May Mining Sale
May Mining Sale

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