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Proof of Authority (POA) Blockchain

Proof of Authority (PoA) Blockchain  

In PoA-based networks, transactions and blocks are validated by approved accounts, known as validators. validators run software allowing them to put transactions in blocks. The process is automated and does not require validators to be constantly monitoring their computers. It, however, does require maintaining the computer (the authority node) uncompromised. With PoA individuals earn the right to become validators, so there is an incentive to retain the position that they have gained. By attaching a reputation to identity, validators are incentivized to uphold the transaction process, as they do not wish to have their identities attached to a negative reputation.

What is Proof of Authority?

The Proof-Of-Authority (PoA) is a consensus method where a group of validators is already chosen as the authority. Their task is to check and validate all the newly added identities, validate transactions, and blocks to add to the network. Proof of Authority Blockchain Development Company is an enhanced version of Proof of Stake (PoS) where the validator’s identity is used as a stake in the network. A node needs to complete a mandatory process to authenticate itself to receive the right to generate new blocks. Validators need to register themselves in the public notary database using government-issued documents with the same identity that they have on the platform.

What is Proof of Authority?
Proof of Authority Blockchain How does it work?

Proof of Authority Blockchain How does it work?

Validators run software to put transactions in blocks. The process is automated and does not require validators to constantly monitor their computers. This, however, requires maintaining the computer (admin site) in good condition. In order to be elected as a validator, a user should comply with three basic conditions

  • The identity must be formally verified on the network with the possibility of cross-checking the information in the public domain.
  • Obtaining the right to be elected as a validator who is authorized to confirm earned and evaluated blocks should not be easy (for example, a potential notary is required to obtain a state notarial license).
  • There should be full consistency in the checks and procedures for establishing authority.


Ultimately, the enterprise sector will likely be the area where PoA will gain the most traction. PoA Blockchain-based algorithms are unlikely to ever be able to power public platforms with thousands or even millions of users, but they are already great for building tight and lean networks tailored to the needs of a limited number of known stakeholders. That’s where Proof of Authority Development shines and where it is likely to make its biggest impact. The team at LimeChain is quite experienced in working with some of the most prominent protocols for building private blockchain solutions. If you need a capable developer to help you leverage the power of blockchain technology to boost your business, don’t hesitate to get in touch!

Advantages of PoA Blockchain

  • High-performance hardware is not required. Compared to PoW consensus, PoA consensus does not require nodes to spend computational resources for solving complex mathematical tasks.
  • The interval of time at which new blocks are generated is predictable. For PoW and PoS consensuses, this time varies.

Use Cases - Proof of Authority in Blockchain 

Because of the relatively small number of validators, PoA is best suited for enterprise-level networks like blockchain consortia and other private networks where some level of trust already exists among the members. It’s telling that Hyperledger Besu, implementation of Enterprise Ethereum, offers two PoA options. Testnets present another strong use case for proof of authority. PoA consensus is ideal for providing a controlled environment for testing features before launching them on the mainnet. Three of Ethereum’s tenets, namely Kovan, Goerli, and Rinkeby, use Proof of Authority. Meanwhile, one of the hottest blockchain protocols today, Polkadot, last year launched in beta as a PoA network, before switching to a PoS for its full release. Proof of Authority is also a great option for a sidechain, a type of blockchain running parallel and connected to a parent blockchain via a two-way bridge. An example of this is the POA Network, a public sidechain on Ethereum that relies on pre-selected validators whose identities are public and verifiable. And then there is VeChainThor, which is perhaps the most high-profile example of a public network using PoA consensus. The network aims to provide blockchain-powered enterprise solutions.

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