Proof of Activity is a consensus mechanism that combines elements of both Proof of Work and Proof of Stake. It ensures the security and integrity of a blockchain while promoting participation from a broader range of users.In this system, miners first compete to solve complex mathematical problems, much like in Proof of Work. Once a block is successfully mined, it doesn’t get finalized immediately. Instead, the process shifts to a Proof of Stake model, where holders of the cryptocurrency can participate in the validation of that block. They get a chance to seal the block based on their stake, giving them an incentive to hold and invest in the network.This hybrid approach aims to provide the benefits of both systems. It maintains mining’s energy efficiency while encouraging users to hold the currency, which can lead to more significant network stability and security. By diversifying the validation process, Proof of Activity attracts a wider user base, fostering greater community engagement.
Bank of Japan Weighs Additional Rate Hikes as Inflation Persists
The Bank of Japan will continue to raise interest rates if economic and price trends progress as expected, Deputy Governor