Proof-of-Authority (PoA)
By CoinGecko | Updated on Mar 03, 2020
On a technical layer, Proof of Authority performs block validation in a similar heuristic manner as Proof of Stake. However, whereas Proof of Stake assigns a validator's queue and importance based the amount of tokens staked by a validator, a Proof of Authority validator's queue arbitrarily predetermined based on their identity and repupation.
This method of block validation addresses the issue of speed and scalability with the drawback of higher centralization as opposed to Proof of Stake or Proof of Work.
Related Terms
Satoshi Nakamoto
The pseudoym used in publishing the Bitcoin Whitepaper. Identity is unknown.
Rug Pull
Sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.
Trustless
Entirely verifiable, without needing to trust or assume an action is done completely and in good faith.
Seed
A value used to initiate generation of pseudorandom number, ususally a string of 12 commen English words.
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