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
Due Diligence
In supply chain traceability, due diligence is the process companies undertake to ensure their suppliers and partners comply with legal, environmental, and ethical standards.
Accountability
Accountability ensures that companies can verify the integrity of their supply chains, uphold compliance with environmental and social standards, and respond to any discrepancies or issues with honesty and corrective action.
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.