Proof of Authority (PoA)

Proof of Authority (PoA) is a consensus mechanism used in blockchain networks where a limited number of approved and trustworthy nodes, called validators, are responsible for verifying transactions and maintaining the ledger. Unlike systems that rely on mining or large resource consumption, PoA depends on the identity and reputation of validators, who are chosen based on their trustworthiness. This approach allows for faster, more efficient processing and is often used in private or permissioned blockchains. Essentially, PoA ensures security and validity through the reputation of trusted validators rather than computational effort or stake.