Mon. May 17th, 2021
Free TON HOUSE, PoA, Wiki

Proof-of-Authority (PoA) is one of the mechanisms for achieving consensus when verifying or creating blocks in the blockchain. The PoA algorithm is based on the reputation of the validator and they do not need to place bets in order to fulfill their authority, but they need complex confirmation of their identity and reliability.

The advantages of this mechanism are the speed of transactions, low energy consumption, fast block creation, and low probability of attacks, since the reliability of validators is verified before they are authorized.

The disadvantages of PoA include the fact that the mechanism leads to the centralization of the system due to a limited number of validators, and the risk of fraud, when the profit from this exceeds the reputational losses.

4
0