Proof of Authority (PoA) is a consensus method used in blockchains where a small group of trusted validators is responsible for confirming transactions and adding new blocks. Instead of relying on computational power (like Proof of Work) or the amount of coins held (like Proof of Stake), PoA works by selecting validators based on their identity and reputation.
This makes PoA fast, energy-efficient, and ideal for networks where trust and efficiency are more important than full decentralization. It’s commonly used in private or consortium blockchains—like those in supply chain tracking or enterprise applications—where known participants can be held accountable. Projects like VeChain, Bitgert, and Palm Network already use this approach to balance speed, security, and trust.
While PoA offers great performance and low costs, its main drawback is centralization. Since only a few entities are allowed to validate, it requires confidence in those authorities to act honestly.
