You must have got an idea about proof of authority. It can be defined as the consensus which provides high performance and fault tolerance. In this guide, we are going to cover the working and applications of PoA in detail. So stay tuned. 

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Functioning of PoA

In PoA, the nodes that have proven their authority to are given authority to generate new blocks. These nodes are termed Validators. Basically, validators execute the software which allows them to add transactions in blocks. In this process, it is not required for validators to constantly keep track of their computers and the process is automated. However, require maintaining the computer uncompromised. Both private networks and public networks can make use of PoA.

PoA consensus algorithm is secured and it leverages the value of identities, which means that block validators are not staking coins but their own reputation instead.

Necessary conditions for PoA consensus

PoA consensus generally they are applied through the following conditions though sometimes it may vary according to a different implementation.

  1. Validators must confirm their real identities.
  2. A candidate must show his will to invest money and put his reputation at stake. A tough process helps to bring down the dangers of choosing uncertain or doubtful validators and incentivizes long-term commitment to the blockchain.
  3. The method for choosing validators must be equal for all candidates.
  4. The identity of validators needs to be verified. By doing so, we can maintain the integrity of the blockchain. To select honest validators, some sort of process should be there.

Application of PoA

Below are some applications of PoA. Let’s look at them.

  1. supply chains: PoA consensus algorithm can be considered a great option for logistical applications such as supply chains.
  2. Microsoft Azure: The proof of Authority model not only enables companies to maintain their privacy but also avails the benefits of blockchain technology. Microsoft Azure is another example that uses PoA. The Azure platform provides solutions for private networks where nodes are pre-selected. As there is no need for mining, the system does not require native currency.

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