Proof-of-Authority (PoA) is a consensus mechanism where transactions and blocks are validated by a limited number of pre-selected, trustworthy nodes or validators. These validators are known entities with a vested interest in maintaining the network’s integrity. PoA offers high transaction throughput and faster finality compared to Proof-of-Work. It is often employed in permissioned blockchain networks.
Context
News often discusses Proof-of-Authority in the context of enterprise blockchains and private networks, highlighting its efficiency and suitability for specific business applications. Debates center on the trade-off between its performance benefits and the reduced decentralization compared to public blockchain protocols. A critical future development involves hybrid consensus models that blend aspects of PoA for specific tasks within larger, more decentralized systems.
PoAh, a hybrid consensus, enhances PBFT with an authorization module, delivering resource-efficient, high-throughput, and confidential decentralized applications.
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