Proof of Authority

What is Proof of Authority?

The proof-of-authority (PoA) consensus technique is an alternative. It generates blocks using credible and well-known validators, giving a network computing power. It uses a Byzantine Fault Tolerance (BFT) algorithm with identity as a stake to enable comparably speedier transactions.

PoA networks don't require any “mining” activities because they are permissioned networks. However, by running numerous nodes under the same identity, network users can still use redundancy. This kind of consensus process doesn't require a lot of resources. nevertheless, necessitates validators to maintain the integrity of their nodes. Due to the user identity and reputation at stake, it can be seen as a mechanism that offers an incentive to act honorably and follow the appropriate functioning of a network.