For Customers Log in
Contact Us

Proof of Activity (PoA) Meaning

Proof of Activity (PoA) is a Hybrid Consensus Mechanism that combines elements of Proof of Work (PoW) and Proof of Stake (PoS). It was designed to solve the Weaknesses of both: the Energy Waste of PoW and the Nothing at Stake problem of PoS. In a PoA system, the process of creating a block begins with Mining (PoW) but finishes with Validation (PoS), ensuring a Dual Layer of security.The technical process works like this: Miners compete to solve a cryptographic puzzle to find a Header.

Once found, the system Selects a group of Stakeholders (based on their coin holdings) to Sign the block. The block is only Added to the Chain once it has enough signatures.

This prevents a 51% Attack because a hacker would need both Massive Computing Power (to mine) and a Massive Amount of Coins (to sign), making the attack Economically Impossible.PoA also ensures that the Network remains Active. In a pure Proof of Stake system, users might just HODL their coins and never participate, which can lead to Centralization.

In PoA, the Stakeholders must be Online and Responsive to sign blocks and earn rewards. This creates a More Dynamic and Engaged community of validators, which is vital for the long-term Health and Security of the blockchain.While PoA is less famous than PoW or PoS, it is used by projects like Decred.

It represents the Innovation that happens as developers try to find the Perfect Balance between Decentralization, Security, and Scalability. As the Energy Debate around Bitcoin continues, hybrid models like PoA offer a Pragmatic Solution that keeps the Security of Mining while drastically Reducing the Carbon Footprint of the network.

← Back to Glossary

Explore our services
Providing liquidity in the cryptocurrency market?
Authorize on our platform and do it smarter with FM Pulse.
pic

FM Marketplace

A reliable and high-performance crypto liquidity marketplace for institutions and businesses.

Learn more
pic

FM White Label

Launch your fully branded B2B crypto trading platform in under one week.

Learn more
pic

FM Liquidity Match

Crypto OTC-as-a-Service infrastructure for enhanced monetization and trade control.

Learn more

Scale your business, leave the hard work of your trading needs to us

Reduce your integration costs and operational risk across multiple access points with our platform

Get started