What is Proof of Authority?
Proof of Authority (PoA) is a consensus mechanism used in secure digital ledger networks where transactions and block creation are validated by approved accounts, known as validators. PoA is often employed in permissioned-based DLT networks where the identity of participants is known and trusted. This mechanism is considered more efficient and scalable than proof of work (PoW), as it relies on a limited number of validators rather than extensive computational work.
Proof of Authority is suitable for applications where transactions need to be processed quickly and in a trusted environment, such as in supply chain management, where ensuring the integrity and speed of transactions is critical.
Related terms
Supply Chain Transparency
Supply Chain Transparency refers to the extent to which a company discloses information regarding the practices, partners, policies, and origins within its supply chain.
Immutability
Immutability refers to the characteristic of data or records that cannot be altered or deleted after being recorded. This principle is a cornerstone in the realm of digital transactions, underpinning the reliability and security of data management systems.
Chain of Custody
Chain of Custody (CoC) refers to the process of documenting and verifying the sequence of custody and control over materials and products within a supply chain.