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Proof of Authority (PoA)
Proof of Authority (PoA) is a consensus mechanism where transactions and blocks are validated by approved or "authorized" validators. Unlike Proof of Work (PoW) or Proof of Stake (PoS), PoA relies on a small number of trusted validators who are known and verified, making it faster and more energy-efficient than other consensus mechanisms. However, PoA is less decentralized since it relies on a centralized group of validators, which can introduce trust issues. It is often used in private or consortium blockchains where decentralization is not a primary concern. Example: VeChain uses PoA to achieve high throughput and low-cost transactions for supply chain management solutions.
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