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
Immutable
A property characterized by inability to be change and stays unchanged over time.
Airdrop
A way to promote cryptocurrencies by sending some free tokens to traders
Decentralized
A system where there are no centralized points of failure or organization with no central authority figure.
Private Keys
The alphanumeric string which allows transactions from the cryptocurrency address
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.