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Proof of Authority

A consensus mechanism where a limited, identified set of validators produce blocks.

Proof of authority is a consensus mechanism where a limited, publicly identified set of validators are authorized to produce blocks, generally trading some open-participation decentralization for higher throughput and more predictable performance.

It's more commonly used in private, permissioned, or enterprise-focused networks than in fully open, public networks.

Examples

  • An enterprise supply-chain network might use proof of authority among a small set of known validators.
  • Proof of authority generally sacrifices some decentralization in exchange for speed and predictability.

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Consensus Mechanisms Compared

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Circle's Arc: A Public Blockchain Where Only Banks Can Validate Blocks

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