You need to login in order to Like
What is Proof Of Authority (PoA) in Blockchain?
By Laxmikant Khanvilkar
Blockchain technology, which is based on consensus mechanisms, continues to evolve. After realizing potential of the most popular consensus algorithms, such as Proof of Work (PoW) and Proof of Stake (PoS) consensus, of course for blockchain professionals, there’s a new consensus algorithm emerging called Proof of Authority (PoA). PoS, PoW, and many other new consensus algorithms have emerged in the blockchain landscape with promising improvements.
PoA has gained recognition for offering better energy efficiency in comparison to PoS. Besides, PoA ensures limited consumption of computational resources, which guarantees better performance than other consensus mechanisms.
Definition of Proof of Authority
Proof of Authority, or PoA, is a consensus algorithm that offers an energy-efficient solution for creating private blockchains. The term was introduced by co-founder of the Ethereum blockchain, Gavin Wood, in 2017.
PoA consensus ensures that trustworthy validation machines safeguard PoA blockchain networks. The node validator is responsible for checking blocks and transactions on a blockchain network. It also provides an assurance of better scalability. This new consensus algorithm could provide scalability as it uses a limited number of block validators.
Working of Proof of Authority
It is important to understand the working mechanism of PoA. As we know, PoA is a consensus mechanism that relies on allowing authorized entities to validate transactions in blockchain networks. The main aim of PoA is to offer a scalable and efficient alternative for creating private blockchain networks.
PoA’s Working Mechanisms
PoA is applicable for permissioned blockchain networks, and the PoA algorithm delivers unique value advantages. The distinctive highlight of PoA is the selection of a set of validators who would take responsibility for the consensus mechanism. The validators or ‘authorities’ also have their identities verified, and the whole network knows their identity.
Each network node verifies the integrity of the block independently by ensuring that it features valid transactions and has the proper links to the previous block. When the majority of nodes agree on the validity of a block, it can be included in the blockchain.
T&C for PoA
As we know, the preapproved validators use software for organizing transactions into different blocks. It is important to note that the process of selecting authorities or preapproved validators is automated. One of the important conditions is: the preapproved validators should follow three fundamental requirements.
- Validators should have good moral standards to validate their credibility, and they should not have any criminal records.
- The identity of a validator must go through formal validation on the network, with the ability to cross-check information in public domain.
- Validator candidates should have the commitment to investing money and staking their identity on the PoA blockchain network.
PoA Consensus Requirements
The consensus requirements in the PoA networks refer to the conditions that a blockchain should follow for validating a proof of authority.
Benefits of PoA Consensus
First, proof of authority consensus is more energy-efficient in comparison to PoW and PoS consensus algorithms.
The PoA algorithm also guarantees better security alongside stability in comparison to PoS and PoW consensus mechanisms.
Hence, the PoA consensus could serve better reliability than the anonymous stakers and miners.
Conclusion:
The PoA consensus mechanism has emerged as best option to PoS and PoW algorithms. PoS was preferred over PoW given its energy-efficiency. However, PoA has highlighted that the reputation of the validators could further enhance energy efficiency. In fact, PoA could help in achieving better efficiency and performance than existing algorithms. It can transform the blockchain landscape for better.
You need to login in order to Like
