Proof of Identity

Page Summary

Proof of identity is a consensus protocol used in blockchain technologies in which each unique individual has one equal unit of the voting power. Proof of identity uses biometric identification methods to verify each individual. Proof of identity is different from proof of work and proof of stake because each individual has equal voting power. One does not get more voting power by investing more or mining with more cryptocurrency mining equipment. 

Proof of Identity

What problem does Proof of Identity solve?

Proof of identity solves the problem proof of personhood creates. This problem occurs when an attacker conducts a Sybil attack. A Sybil attack is when an attacker creates a large number of pseudonyms to gain influence in a network. Proof of work and proof of stake are methods to prevent Sybil attacks, but mostly benefit large groups of people and corporations. Because proof of identity gives each individual equal voting power, each person earns the same reward, regardless of how much they invest. 

How do users prove their humanity?

Individuals have to attend pseudonymous parties to prove their humanity. They can wear masks to remain anonymous. This is cumbersome because every user has to attend a new party every time the network expands. It could be the case that some individuals cannot join a certain party or forget one. 


eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.


Please enter your comment!
Please enter your name here

This site is registered on as a development site.