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Proof of Authority (PoA)

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Table of contents
    1. 0.2. How Proof of Authority Works
    2. 0.4. Why PoA Is Used

Proof of Authority (PoA) is a consensus mechanism where a limited number of pre-approved validators are given the power to create new blocks and secure the blockchain.

How Proof of Authority Works

Instead of relying on mining (PoW) or token ownership (PoS), PoA uses identity and reputation. Only selected validators, often known and trusted entities, can produce blocks. Their real-world identities are tied to their authority, which incentivizes them to act honestly, since misconduct could damage their reputation or remove them from the network.

Why PoA Is Used

PoA is popular in private or consortium blockchains where speed, efficiency, and trust are prioritized over decentralization. It offers fast block times, high throughput, and low energy usage. Networks like VeChain and some Ethereum testnets have adopted PoA to enable enterprise-level performance while still maintaining some level of trust.