Definition of Proof-of-Authority (PoA)

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.

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Related Terms

Algorithmic Stablecoin

Algorithmic stablecoins are tokens pegged to a fiat currency which is usually the US dollar, purely through software and specific conditions.

Emission

The speed/rate at which new coins are minted and released as dictated by the protocols written.

Order Book

An electronic list of all buy and sell orders in an exchange

Proof-of-Authority (PoA)

A consensus algorithm that asigns block validation queue based on identity and reputation.

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