Proof of authority (PoA) is an

algorithm In mathematics and computer science, an algorithm () is a finite sequence of rigorous instructions, typically used to solve a class of specific Computational problem, problems or to perform a computation. Algorithms are used as specificat ...

used with

blockchain A blockchain is a type of distributed ledger technology (DLT) that consists of growing lists of records, called ''blocks'', that are securely linked together using cryptography. Each block contains a cryptographic hash of the previous block, a ...

s that delivers comparatively fast transactions through a consensus mechanism based on identity as a stake. The most notable platforms using PoA are VeChain, Bitgert, Palm Network and Xodex.

Proof-of-authority

In PoA-based networks, transactions and blocks are validated by approved accounts, known as validators. Validators run software allowing them to put transactions in blocks. The process is automated and does not require validators to be constantly monitoring their computers. It, however, does require maintaining the computer (the authority

node In general, a node is a localized swelling (a "knot") or a point of intersection (a vertex). Node may refer to: In mathematics *Vertex (graph theory), a vertex in a mathematical graph *Vertex (geometry), a point where two or more curves, lines, ...

) uncompromised. The term was coined by Gavin Wood, co-founder of Ethereum and

Parity Technologies Parity may refer to: * Parity (computing) ** Parity bit in computing, sets the parity of data for the purpose of error detection ** Parity flag in computing, indicates if the number of set bits is odd or even in the binary representation of the ...

. With PoA, individuals earn the right to become validators, so there is an incentive to retain the position that they have gained. By attaching a reputation to identity, validators are incentivized to uphold the transaction process, as they do not wish to have their identities attached to a negative reputation. This is considered more robust than PoS ( proof-of-stake) - PoS, while a stake between two parties may be even, it does not take into account each party’s total holdings. This means that incentives can be unbalanced. On the other hand, PoA only allows non-consecutive block approval from any one validator, meaning that the risk of serious damage is centralized to the authority node. PoA is suited for both private networks and public networks, like POA Network or Eurus, where trust is distributed.

References

{{Cryptocurrencies, state=expanded Algorithms Blockchains