PoD is similar to another consensus algorithm, proof-of-importance, because both use a sort of ranking system based on set criteria to determine who is eligible to validate and propose blocks. In PoD, eligibility is determined by how high of influence an account has, where influence is based on liquidity and propagation.
- Top-ranked accounts are selected
- Chosen accounts pay deposit and are qualified as the blocks Validators (Validators Set is dynamic, changes in Set may occur after Epoch change.)
- Algorithm pseudo-randomly chooses block Proposer
- After a new block is proposed, Validators Set (each Validator is charged a deposit) participate in a round of BFT-Style voting to verify block (1. Prepare stage -> 2. Commit Stage. Validators should have > 2/3 of total deposits to validate Block)
- Block is added. Block rewards : each Validator rewarded with 1 NAS.
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- Proof-of-importance (PoI)Blockchain 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’.
- Nebulas (blockchain)Nebulas is a decentralized platform that provides value-based blockchain operating system and search engine.