Proof-of-Authority (PoA)

What Is Proof-of-Authority (PoA)?

Proof-of-Authority (PoA) is a consensus mechanism that operates on the basis of known and trusted validators who produce blocks and contribute computational power to a network.

It utilizes a Byzantine Fault Tolerance (BFT) algorithm and relies on the validators’ identities as their stake in the network.

This consensus mechanism facilitates faster transactions compared to some other mechanisms.

Tailored Blockchain Networks

PoA is designed explicitly for enterprises or private organizations seeking to build closed and permissioned blockchain networks that do not require participation from the general public.

In PoA networks, there is no need for traditional “mining” activities.

However, network participants can enhance redundancy by running multiple nodes under the same identity.

Validator Reputation

While PoA is not resource-intensive, validators are required to maintain the integrity of their nodes.

The mechanism incentivizes honest behavior and adherence to network protocols, as the reputation and identity of validators are at stake.

To implement PoA, three conditions must be met:

  1. Validators must have formal identification recorded on the blockchain.
  2. Validators must meet specific eligibility criteria, such as affiliation with the organization or a reputable reputation.
  3. Validators must adhere to defined procedures for block production and validation on the network.