Proof Authority

Definition ∞ Proof of Authority (PoA) is a consensus mechanism where transactions are validated by a limited number of pre-selected, authorized nodes known as validators. These validators are typically reputable entities, and their identity is known. PoA offers high transaction throughput and faster finality compared to proof-of-work, making it suitable for permissioned blockchains and private networks. It relies on the reputation and trustworthiness of the validators.
Context ∞ News frequently reports on Proof of Authority being utilized in enterprise blockchain applications and consortia chains, where a centralized authority or a group of trusted participants is acceptable. Discussions often compare PoA with more decentralized consensus mechanisms, highlighting its trade-offs between efficiency and censorship resistance. The mechanism’s use is prominent in contexts requiring strict control and verifiable identities.