What is proof of activity (PoA)?

Proof of activity is one of the many algorithms used to ensure authenticityProof of activity is a mixed approach that combinesTwo other commonly used algorithms are Proof-of-Work (PoW) and Proof-of-Stake (PoS).

The most popular cryptocurrency, Bitcoin, uses the PoW algorithm, which has the inherent feature of increasing the level of mining difficulty over time.While this method prevents spam and hacker attacks on the Bitcoin network, it doesto the fact that more and more computing power is being used for mining, which in turn increases theEnergy costs. 

As the cost of electricity and equipment increases as the difficulty of mining in the PoW network increases, the PoS algorithm has emerged as an alternative, which givesAuthority to mine or confirm transactions depending on how much cryptocurrency is owneduser. 

Although the PoS algorithm successfully reduces energy costs and uses cheap hardware, it contributes to the accumulation of cryptocurrency by large players.

Both PoW and PoS protect the network from 51% attack. Such an attack allows you to completely control the network, block confirmation of new transactions, stop payments between different users of the blockchain, and even cancel transactions made in the past, which can lead to the phenomenon of double spending.

Proof of Activity (PoA) is a hybrid of PoW and PoS algorithms and containsThe mining process in PoA is identical to POW mining – miners try to get ahead of each other in calculating a new block.When a new block is mined, the system switches to the POS, and the new block containsonly the title and address of the miner.

Based on the header data, a newrandom group of validators who must confirm or sign a new block. The more cryptocurrencies a user owns, the more likely he is to be elected as a validator.

As soon as all validators sign the mined block, it receives the status of a complete block, is identified and added to the blockchain.

Since PoA is based on PoW and PoS, it is partiallyhas the disadvantages of both protocols. More computing power is still needed to mine the blocks at the POW stage, and whales are still more likely to get on the list of validators and accumulate more digital assets through rewards.

POA also prevents a 51% chance of attack, as it is impossible to predict who will be in the futureto sign blocks, and the competition between validators does not allow accumulating computing power in the group.