Proof of authority

Proof of authority (PoA) is a category of consensus protocols used with blockchains based on reputation and identity as a stake that delivers comparatively fast and efficient transactions (compared to proof-of-work and proof-of-stake).^[1][2] The most notable platforms using PoA are VeChain,^[3] Bitgert,^[4] Palm Network^[5] and Xodex.

Proof-of-authority

In PoA-based networks, transactions and blocks are built and validated by approved entities known as validators. The term "proof-of-authority" was coined by Gavin Wood, co-founder of Ethereum and Parity Technologies.^[6]

With PoA, validators are incentivized to maintain good behavior, as they do not wish to have their identities attached to a negative reputation. PoA can have higher security than PoW and even PoS due to the value that validators place on their own reputation and identity. Because PoA is permissioned, it is not fully trustless. It generally operates with fewer nodes and validators, thus requiring fewer duplicated resources, so it is more efficient than PoW and PoS.^[1][2]

PoA is suited for both private networks and public networks, like POA Network or Eurus, where trust is distributed.^{[citation needed]}