Proof-of-importance (PoI)

PoI uses network theorynetwork theory to assign a rating to each account's importance to the blockchain network. The design goal of this system is to empower regular token holders to participate in adding blocks to the blockchain while disincentivizing mining farms and token hoarding.

Proof-of-importance (PoI) is a consensus mechanism developed by NEM that is used to determine which network participants (nodes) are eligible to add a block to the blockchain, a process NEM calls ‘harvesting’.

PoI uses network theory to assign a rating to each account's importance to the blockchain network. The design goal of this system is to empower regular token holders to participate in adding blocks to the blockchain while disincentivizing mining farms and token hoarding.

The benefits of proof-of-importance include:

• Minimal environmental impact (similar to proof-of-stake)
• Doesn't require specialized hardware
• Allows 'harvesting' / mining while computer is off