Proof-of-authority (PoA)

Proof-of-authority (PoA) is a consensus algorithm used in blockchain networks where blocks are validated by specific individuals or organizations known as "validators." These validators are already established and recognized as trustworthy, and they are responsible for validating transactions and creating new blocks in the blockchain. The primary advantage of PoA is that it is fast and efficient compared to other consensus algorithms like Proof-of-Work (PoW) or Proof-of-Stake (PoS). This is because there is no need for complex mathematical calculations or a large number of nodes to reach a consensus. The validators are already known and trusted, so the decision-making process is streamlined. PoA is commonly used in enterprise blockchain solutions, where businesses want to control who participates in the network and ensure quick and efficient transaction processing. It is also useful for private networks or consortiums that want to avoid the massive energy consumption associated with PoW and the potential issues with centralization in PoS.