Proof-of-Authority (PoA)
By CoinGecko | Updated on Mar 03, 2020
On a technical layer, Proof of Authority performs block validation in a similar heuristic manner as Proof of Stake. However, whereas Proof of Stake assigns a validator's queue and importance based the amount of tokens staked by a validator, a Proof of Authority validator's queue arbitrarily predetermined based on their identity and repupation.
This method of block validation addresses the issue of speed and scalability with the drawback of higher centralization as opposed to Proof of Stake or Proof of Work.
Related Terms
Metaverse
The Metaverse is a virtual space where users are able to interact with each other in a computer generated environment.
Mining Reward
The reward resulting from contributing computing resources to process transactions
State Channel
Secondary payment channel occuring off-chain
ROI
Short for “Return on Investment”, the ratio between the net profit and cost of investing.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.