blockchain to store data in a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralization/">decentralized and provably <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-immutable/">immutable manner. It is a form of blockchain that uses a sophisticated <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hash/">hash-based mechanism to store blockchain metadata in a <strong>remote hash vault</strong>. It was invented by ParallelChain Lab and its first implementation was on ParallelChain Private. Note that PoIM methods have been applied to such patents as <em>US-2021-0297265-A1; US-2021-0218549-A1; EP3848845; CN2021102000629400</em>.</p>\n<p><strong>The data added to the</strong> ledger is not replicated or distributed around network <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">nodes, it rather is a hash pointer with no traceable information. For this reason, a <strong>PoIM-powered blockchain network</strong> preserves the strictest data privacy standards. This method also allows a blockchain to scale and achieve high <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-throughput/">throughput while maintaining its decentralized nature.</p>\n<p>The PoIM system <strong>enables blockchain network users to examine the trustworthiness of one another's data</strong> by proving its immutability at any time, without breaching the data privacy of the inspected party. At first glance, this mechanism for proving immutability might appear redundant, given the fact that <strong>immutability is thought to be inherent in all blockchains</strong>.</p>\n<p>Sure, when compared to centralized database systems, blockchain as a distributed ledger technology does have a higher level of immutability. 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Investing","slug":"trading-and-investing","updated":null,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-trading.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-trading-101.jpg","rating":80,"sections":[{"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","featured_image_id":10342,"status":"published","chapter_id":7,"language":"en","order":1,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/where-to-trade-crypto","featured_image":{"id":10342,"uuid":"0bd8d78a-9423-48ee-9161-34dc1872b97c","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/where-to-trade-crypto-featured-image.jpg","path":"crypto/storage/optimized/where-to-trade-crypto-featured-image.jpg","original_path":"crypto/storage/original/where-to-trade-crypto-featured-image.jpg","name":"where-to-trade-crypto-featured-image.jpg","original_name":"where-to-trade-crypto-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"85.96KB"},"youtube_video":null},{"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","featured_image_id":10729,"status":"published","chapter_id":7,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-invest-in-crypto","featured_image":{"id":10729,"uuid":"3439a1db-9892-404a-b4b6-a1db5a34bca4","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/how-to-invest-in-crypto-featured-image.jpg","path":"crypto/storage/optimized/how-to-invest-in-crypto-featured-image.jpg","original_path":"crypto/storage/original/how-to-invest-in-crypto-featured-image.jpg","name":"how-to-invest-in-crypto-featured-image.jpg","original_name":"how-to-invest-in-crypto-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"75.22KB"},"youtube_video":null},{"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","featured_image_id":11310,"status":"published","chapter_id":7,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/ico-vs-ido","featured_image":{"id":11310,"uuid":"315e8a2b-93a1-4870-be48-a2a09d801663","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/ico-vs-ido-featured-image.jpg","path":"crypto/storage/optimized/ico-vs-ido-featured-image.jpg","original_path":"crypto/storage/original/ico-vs-ido-featured-image.jpg","name":"ico-vs-ido-featured-image.jpg","original_name":"ico-vs-ido-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"64.39KB"},"youtube_video":null},{"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","featured_image_id":11359,"status":"published","chapter_id":7,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-an-airdrop","featured_image":{"id":11359,"uuid":"7b43c968-1275-4d3e-acb1-1707a43a4014","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","path":"crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","original_path":"crypto/storage/original/what-is-an-airdrop-featured-image.jpg","name":"what-is-an-airdrop-featured-image.jpg","original_name":"what-is-an-airdrop-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"66.05KB"},"youtube_video":null},{"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","featured_image_id":6542,"status":"published","chapter_id":7,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-get-free-crypto","featured_image":{"id":6542,"uuid":"4fceb9ab-391e-4ef9-b00d-c871a49878a3","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-get-free-crypto.o.jpg","path":"crypto/storage/media/how-to-get-free-crypto.o.jpg","original_path":"crypto/storage/media/how-to-get-free-crypto.jpg","name":"how-to-get-free-crypto.o.jpg","original_name":"how-to-get-free-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"93.93KB"},"youtube_video":null},{"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":6,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-arbitrage-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","featured_image_id":11394,"status":"published","chapter_id":7,"language":"en","order":7,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-fud","featured_image":{"id":11394,"uuid":"defd32c5-d3e1-4e66-9f58-e2ee316bad3a","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-fud-featured-image.jpg","path":"crypto/storage/optimized/what-is-fud-featured-image.jpg","original_path":"crypto/storage/original/what-is-fud-featured-image.jpg","name":"what-is-fud-featured-image.jpg","original_name":"what-is-fud-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"65.30KB"},"youtube_video":null},{"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":8,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/investing-in-cryptocurrency","featured_image":null,"youtube_video":null},{"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","featured_image_id":6532,"status":"published","chapter_id":7,"language":"en","order":9,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-a-rug-pull-in-crypto","featured_image":{"id":6532,"uuid":"be8043fb-078c-4487-9af9-d2d9c2b574ea","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","original_path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.jpg","name":"what-is-a-rug-pull-in-crypto.o.jpg","original_name":"what-is-a-rug-pull-in-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"92.28KB"},"youtube_video":null},{"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","featured_image_id":6555,"status":"published","chapter_id":7,"language":"en","order":10,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-rug-pulls-in-crypto","featured_image":{"id":6555,"uuid":"80cbed9d-3b4b-45d9-9a85-d2d8108c0f32","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","path":"crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","original_path":"crypto/storage/media/how-to-avoid-rug-pulls.jpg","name":"how-to-avoid-rug-pulls.o.jpg","original_name":"how-to-avoid-rug-pulls.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"111.99KB"},"youtube_video":null},{"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","featured_image_id":6526,"status":"published","chapter_id":7,"language":"en","order":11,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-crypto-taxes","featured_image":{"id":6526,"uuid":"1e44162c-ef1d-4010-81b4-9e8d1809aedf","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","path":"crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","original_path":"crypto/storage/media/how-to-avoid-crypto-taxes.jpg","name":"how-to-avoid-crypto-taxes.o.jpg","original_name":"how-to-avoid-crypto-taxes.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"99.10KB"},"youtube_video":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-analysis.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-analysis-101.jpg","rating":100,"sections":[{"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":1,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-bullish-and-bearish","featured_image":null,"youtube_video":null},{"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/best-technical-analysis-indicators-for-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-candlesticks","featured_image":null,"youtube_video":null},{"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-track-new-crypto-coins","featured_image":null,"youtube_video":null},{"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-research-crypto","featured_image":null,"youtube_video":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-mining.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-mining-101.jpg","rating":80,"sections":[]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":906,"original_id":null,"author_id":40,"translator_id":null,"title":"What is Proof-of-History (PoH)?","slug":"what-is-proof-of-history-poh","section":"P","keyword":"Proof-of-History (PoH)","status":"published","definition":"a consensus mechanism that incorporates time into the blockchain.","content":"<p>Proof-of-History (PoH) is a consensus mechanism that decreases the load on network nodes while processing blocks by <strong>integrating time itself into the blockchain</strong>. Nodes contain internal clocks that validate events and time.</p>\n<p>In a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-work-pow/">Proof-of-Work (PoW)</strong></a> scenario, the successful block miner is the first to evaluate the suitable <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-nonce/">nonce. This nonce takes a received quantity of computer power. Proof-of-History (PoH) is a bit different since it is able to <strong>overcome a verifiable delay function (VDF) </strong>by running a particular set of chronological steps. Since no parallel processing is allowed, evaluating the time it will take for each step is easy.</p>\n<p><strong>PoH employs Bitcoin's <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-sha-256/">SHA-256 <strong>algorithm </strong>to provide a reliable time-tracking mechanism within the decentralized blockchain. SHA-256 is a variant of SHA-2, a sophisticated encryption method created by the National Security Agency (NSA).</p>\n<p><strong>The only blockchain that uses the Proof-of-History algorithm is Solana</strong>. Hence, the blockchain can process about 60,00 transactions per second, making it very scalable. It also ensures that evaluating the timing of a transaction is quicker.</p>\n<p><strong>The mechanism is based on Proof-of-Stake;</strong> however, it does have a varying technique for calculating time. To evaluate the passage of time, historical events are currently being employed. These events are made into a hash, which can only be produced by prior events. It is impossible to counterfeit the hash.</p>\n<p>However, Proof-of-History has some drawbacks. For instance, there were several attacks in Solana found in the past that were caused by Proof-of-History. Also, the technique was never tested on a wide scale, so there are no guarantees that it actually operates without any errors.</p>\n<h2>Proof-of-History (PoH) VS Proof-of-Stake (PoS)</h2>\n<p>There are a lot of similarities between Proof-of-Stake and Proof-of-History algorithms. This is because <strong>Proof-of-Stake was used as a base for creating Proof-of-History</strong>.</p>\n<p>In both methods, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-validator/">validators are utilized to ensure that transactions are validated, and new blocks are created. Also, both of them are developed on the very same foundation.</p>\n<p>Nonetheless, there are major differences between these two algorithms. <strong>Proof-of-Stake employs the timestamp function</strong>. This indicates that every node depends on the network's timestamp. The network functions in a slower manner because time has to flow via the network first.</p>\n<p>Besides, Proof-of-Stake uses the Verifiable Delay Function, which computes the time based on previous events. Following an examination of these occurrences, a hash function is created that can be verified by anyone. This hash is added to each and every block produced by the network.</p>\n<p>&nbsp;</p>","level":"hard","meta_title":"What is Proof-of-History (PoH)? Definition & Meaning | Crypto Wiki","meta_description":"Proof-of-History (PoH) meaning: Proof-of-History (PoH) - is a method of incorporating time into the blockchain.","meta_keywords":null,"language":"en","created_at":"2022-04-11T06:21:21.000000Z","updated_at":"2023-03-30T08:21:19.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-proof-of-history-poh"},"prevSection":{"id":889,"original_id":null,"author_id":43,"translator_id":null,"title":"What is Profit and Loss (P&L) Statement?","slug":"what-is-profit-and-loss-pandl-statement","section":"P","keyword":"Profit and Loss (P&L) Statement","status":"published","definition":"is a type of financial statement that shows how the company has performed financially during a specific time period.","content":"<p>A <strong>Profit and Loss (P&amp;L) Statement</strong>, also referred to as an income statement, earnings statement, expense statement, or operations statement is a type of financial statement where companies report their revenue, expenses, gains, and losses incurred throughout a specific period of time.&nbsp;</p>\n<p>This type of financial statement allows the company to assess its performance in regard to the amount of money it&rsquo;s making or losing. It does this by evaluating these aspects:</p>\n<ul>\n<li>Revenue - the total amount of money generated from selling goods or services;</li>\n<li>Costs - the amount of money spent to sell goods or services;</li>\n<li>Net <strong>profit</strong> - the remnants of subtracting costs from revenue.</li>\n</ul>\n<p>This is considered to be crucial information when making business decisions and investments.&nbsp;</p>\n<p>Public companies must report Form 10-Q to the U.S. <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-securities-and-exchange-commission-sec/">Securities and Exchange Commission (SEC)</strong></a> on a quarterly basis. Private companies are the exception to this rule.</p>\n<p>While the statement is a legal requirement, companies may also fill it for their own personal interests. Entire corporations and smaller divisions within said corporations can fill out a profit and loss statement.</p>\n<p>The P&amp;L statement is used for a variety of other purposes such as:</p>\n<ul>\n<li>Ensuring investors, regulators, and tax collectors are up to date with the company&rsquo;s performance;</li>\n<li>Making informed business decisions;</li>\n<li>Preparing future budgets;</li>\n<li>Analyzing and measuring the company&rsquo;s profitability;</li>\n<li>Cutting expenses.</li>\n</ul>\n<h2>What is in a Profit and Loss Statement?</h2>\n<p>This is the structure of a P&amp;L statement:</p>\n<ul>\n<li>Sales revenue is the total amount of money a company receives from selling goods or services. It takes into account every discount and sale as well as a deduction from goods that were returned;&nbsp;</li>\n<li>Costs of goods and services sold refer to the amount of money that is directly spent on the process of selling goods and services such as elements of production like labor and materials;</li>\n<li><strong>Operating income</strong>, also known as earnings before taxes, describes the amount of money left after subtracting direct and indirect costs from the sales revenue.&nbsp;</li>\n<li>Operating expenses refer to the expenses that a company incurs when operating as usual. It takes into account various indirect costs including rent, general office supplies, salaries of administrative personnel, repairs, and utilities to name a few. Equipment depreciation is sometimes added to the operating expenses.&nbsp;</li>\n<li>Gross profit represents the remaining amount of money after deducting the cost of goods and services sold from the sales revenue. &nbsp;</li>\n</ul>\n<h2>How to Calculate a Profit and Loss Statement?</h2>\n<p>You can calculate the P&amp;L statement by taking away the costs of goods or services sold out of the total revenue. Next, calculate the net income by also taking away operating expenses from the total revenue.&nbsp;</p>\n<p>What is the difference between a Profit and Loss Statement and a Cash Flow Statement?</p>\n<p>P&amp;L statement tracks revenue minus expenses incurred within a specific period of time. On the other hand, a cash flow statement records the amount of money that goes in and out of a company within a specific period of time.</p>","level":"medium","meta_title":"What is Profit and Loss (P&L) Statement? Definition & Meaning | Crypto Wiki","meta_description":"Profit and Loss (P&L) Statement meaning: Profit and Loss (P&L) Statement - is a type of financial statement that shows how the company has performed financially during a specific time period.","meta_keywords":null,"language":"en","created_at":"2022-04-08T13:53:45.000000Z","updated_at":"2022-10-03T07:09:56.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-profit-and-loss-pandl-statement"},"currentChapter":"P","currentSection":"what-is-proof-of-immutability-poim","chapterTitle":"P","readingLevel":"medium"},"url":"/crypto/learn/crypto-terms/what-is-proof-of-immutability-poim","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Handbook Cover Page
Crypto Terms: Letter P

What is Proof-of-Immutability (PoIM)?

Proof-of-Immutability (PoIM) MEANING:
Proof-of-Immutability (PoIM) - a type of blockchain that stores blockchain metadata in a distant hash vault using a sophisticated hash-based method.
Medium
2 minutes

Let's find out Proof-of-Immutability (PoIM) meaning, definition in crypto, what is Proof-of-Immutability (PoIM), and all other detailed facts.

Without needing to disperse data across nodes, Proof-of-Immutability (PoIM) allows the blockchain to store data in a decentralized and provably immutable manner. It is a form of blockchain that uses a sophisticated hash-based mechanism to store blockchain metadata in a remote hash vault. It was invented by ParallelChain Lab and its first implementation was on ParallelChain Private. Note that PoIM methods have been applied to such patents as US-2021-0297265-A1; US-2021-0218549-A1; EP3848845; CN2021102000629400.

The data added to the ledger is not replicated or distributed around network nodes, it rather is a hash pointer with no traceable information. For this reason, a PoIM-powered blockchain network preserves the strictest data privacy standards. This method also allows a blockchain to scale and achieve high throughput while maintaining its decentralized nature.

The PoIM system enables blockchain network users to examine the trustworthiness of one another's data by proving its immutability at any time, without breaching the data privacy of the inspected party. At first glance, this mechanism for proving immutability might appear redundant, given the fact that immutability is thought to be inherent in all blockchains.

Sure, when compared to centralized database systems, blockchain as a distributed ledger technology does have a higher level of immutability. However, the degree of immutability differs between blockchains, depending on the consensus mechanism and the size of the membership. A permissioned/private blockchain network, for example, is typically smaller in scale and thus easier to manipulate.

PoIM provides a way for participants to check if the chain has been tampered with or if a record has been changed, without having to visit the database. Besides, as real-world adaption accelerates, an auditing mechanism for certifying information integrity within the blockchain ledger will become increasingly important. It will probably be used in advancing the legal recognition of blockchain data and smart contracts.

In addition, PoIM is planned to be used in "Inter-ParallelChain Communication" to meet the trust and data privacy criteria for permissioned and permissionless networks to interoperate in the Web3 ecosystem.
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