What Is PoA (Proof of Authority)?
Also known as: Proof of Authority, PoA
In short
Proof of Authority (PoA) is a consensus mechanism in which blocks are produced by a limited number of known, pre-approved validators, and trust rests on these validators' reputation instead of computing power or stake.
In PoA networks, validators are generally institutions or individuals whose real identities are disclosed. The block production order is shared among these validators in rotation, and a validator that behaves maliciously is both removed from the network and suffers a loss of reputation. Because there is no mining, energy consumption is low; because there are few validators, blocks are produced quickly and transactions are finalized in a short time.
These features make PoA especially suitable for test networks and enterprise, permissioned blockchains. Ethereum's old test networks such as Kovan and Goerli used PoA-based algorithms. Some public networks prefer hybrid models that combine PoA with staking; BNB Smart Chain's Proof of Staked Authority approach is an example.
The price of PoA is a concession on decentralization. A small, approved group of validators can censor transactions, is more exposed to regulatory or legal pressure, and the network requires trusting these institutions. For this reason, PoA is considered suitable for environments where participants know each other rather than for an open, permissionless monetary system.
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