Proof of Activity (PoA)
Proof of Activity (PoA) is a hybrid blockchain consensus mechanism that combines elements of Proof of Work (PoW) and Proof of Stake (PoS) to validate transactions and secure the network.
How Proof of Activity Works
In PoA, the process starts with miners solving a cryptographic puzzle like in PoW. Once a new block is found, the block doesn’t contain transactions yet. Instead, it triggers a second phase where a group of randomly selected validators (based on their stake) signs off on the block before it’s finalized. This two-step process merges the security of PoW with the energy efficiency and trust model of PoS.
Why PoA Matters
PoA aims to overcome the limitations of pure PoW or PoS systems. It reduces energy consumption while keeping the network secure and decentralized. It also discourages centralization by requiring both computational work and stakeholder consensus. Projects experimenting with PoA seek a balanced approach to performance, security, and sustainability.