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What is Proof of Authority (PoA)?

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What does Proof of Authority (PoA) mean?

All validators must consent when adding new data blocks to the blockchain. The proof of authority (PoA) consensus tool requires each node (a device-stakeholder combination that runs the protocol software of a decentralized network) to log in and identify itself for quick transactions using identity and money.

How does Proof of Authority work?

Instead of using a decentralized cloud with validation codes, PoA technology relies on a predefined list of nodes with special security clearance. In PoA, validators are chosen based on their reputation. The process requires less computing power and is centrally managed. Ultimately, the validators put their reputation on the line during the consensus process and must remain trusted and authorized.

What are the terms to carry out PoA?

To be chosen as a validator, a user must meet three basic requirements:

  1. A validator should be trustworthy with good moral standards and a clean criminal record.
  2. A validator’s identity must be validated on the network using a formal process that can cross-check the information in the public domain. The validation process must be able to confirm the real identities of validators.
  3. A validator candidate should be willing to invest money and stake their own reputation. A rigorous process eliminates questionable validators and encourages a long-term commitment.

All validators go through the same validation process, which ensures the system remains reliable and honorable.

What are the pros and cons of Proof of Authority?

Thanks to the node’s proven trustworthiness, the process doesn’t require costly staking or mining operations. The computing power in a PoA network is low and can be carried out quickly.

PoA blockchains can be just as secure as other platforms due to thorough background checks and regular audits of the chosen validator nodes. It may be more work upfront, but it’s achievable.

A main downside of the PoA is that because it’s hand-picked and centrally managed, the blockchain structure is less automated than other solutions, which increases risks of human error.

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