Proof of Authority
A consensus model where a known and authorized set of validators produces and validates blocks.Definition
A consensus model where a known and authorized set of validators produces and validates blocks.Why it matters
Consensus concepts explain how independent nodes agree on one shared history without a central coordinator.How it works
The network selects a group of nodes to act as validators. These nodes are vetted and their identities are stored on the blockchain. When a new block needs to be added, these nodes take turns proposing and signing off on the transactions, ensuring consensus without the need for complex computation.Real-world example
The VeChainThor blockchain uses a Proof of Authority mechanism to manage supply chain logistics.Advantages
- High transaction throughput
- Energy efficiency
- Low operational costs
Limitations
- Requires central trust
- Lower decentralization
- Vulnerable to validator identity compromise
Common misconceptions
- It is not a truly decentralized protocol like Bitcoin.
- It does not provide the same security guarantees as permissionless networks.
Related knowledge
- Block Producer — term
- Finality — term
- Proof of Stake — term
- Validator — term
Canonical knowledge ID:
glossary:proof-of-authority