Proof of Authority (PoA)

A type of consensus mechanism used in blockchain networks where transaction validation is carried out by pre-approved nodes or validators, typically selected based on their reputation or authority, ensuring network security and reliability.

What You Need To Know

PoA is particularly suited for permissioned blockchains, where trusted entities (can be institutions) who are pre-approved to validate transactions and create new blocks. It offers high efficiency, scalability, and security, making it ideal for enterprise and consortium blockchain use cases. Can be considered to be one of the more centralized type of the blockchain consensus mechanisms.