Proof of Authority (PoA) is a consensus mechanism where transactions and blocks are validated by approved accounts, known as validators. PoA networks are secured by the reputation of these validators, making it a more centralized but efficient and scalable approach to consensus.
Proof of Authority: The Simplest Proof Mechanism Yet!
Unlike other consensus mechanisms we've discussed, where validators are chosen through work, luck, or a combination of both, Proof of Authority (PoA) operates differently. In PoA, validators are predetermined by a community from the outset and remain unchanged unless the committee decides otherwise. This absence of randomness in validator selection streamlines the validation process, making it both fast and efficient. However, this efficiency comes at a cost: PoA is less decentralized, with primary actors playing significant roles. Consequently, this centralization could potentially reduce the system's overall security.