PoA (Proof of Authority)

Proof-of-Authority (PoA) is a consensus mechanism used in blockchain networks where network validators are known and trusted entities. Unlike Proof-of-Work or Proof-of-Stake, where nodes compete to validate transactions, PoA relies on a fixed set of validators, often predetermined by the network's administrators. Validators in PoA are typically organizations or individuals with a high level of trust and reputation within the network. PoA prioritizes efficiency and scalability over decentralization, making it suitable for enterprise and private blockchain networks where governance and control are paramount. However, PoA sacrifices decentralization as validators are centralized entities, which can raise concerns about censorship resistance.

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