How does proof of authority blockchain differ from other consensus algorithms like proof of work and proof of stake?

1 answers

• Nov 28, 2021 · 3 years ago
  Proof of authority (PoA) blockchain is a consensus algorithm that differs from proof of work (PoW) and proof of stake (PoS). Unlike PoW, which relies on miners solving complex mathematical puzzles to validate transactions, PoA uses a fixed set of approved validators to validate transactions and add blocks to the blockchain. This approach eliminates the need for energy-intensive mining and reduces the risk of 51% attacks. However, it also means that the power to validate transactions is concentrated in the hands of a few validators, which can lead to centralization concerns. PoS, on the other hand, selects validators based on the number of coins they hold and their stake in the network. While PoS is more energy-efficient than PoW, it still faces similar centralization challenges. PoA offers a higher level of security and is suitable for applications that require trust and identity verification.
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