What is Proof of Authority?
Many protocols have been created to achieve agreement in blockchain systems. In addition to protocols such as Proof of Work, Proof of Stake, and Proof of Burn, Proof of Authority, which provides an alternative for fast transactions in the blockchain, is also preferred.
What is Proof of Authority?
Proof of Authority was proposed by Gavin Wood, co-founder of Ethereum. In the Proof of Authority protocol, users who verify block transactions on the blockchain use their identity and reputation to verify transactions rather than using and locking cryptocurrency assets. In networks where the Proof of Authority protocol is used, people whose identity has been previously verified gain the authority to generate new blocks. The real identities of the validators responsible for the operation of the network are clear. The authorization of these users to verify is the result of a specific examination after revealing their true identity.
What is Proof of Authority Used for in Blockchain Networks?
It was developed as an alternative to frequently used protocols such as Proof of Authority, Proof of Stake, and Proof of Work. It is used in blockchain networks to produce an alternative to the shortcomings and problems of Proof of Authority, Proof of Stake, and Proof of Work. The number of transactions per second in the Proof of Authority protocol is higher than in other protocols. The energy consumption in the processes is very low. Compared to other protocols, low transaction fees are paid.
Differences between Proof of Authority and Proof of Stake
Users who want to be able to verify transactions and get a share of revenue in the Proof of Stake protocol must lock their cryptocurrency assets to be used for verification. The amount desired to be used for this transaction cannot be withdrawn from the wallet until the lock is removed and is marked on the network as the user's share. In the Proof of Authority protocol, transaction validators do not need cryptocurrency. Users are required to reveal their reputation and identity in order to verify transactions. Proof of Authority can be seen as a continuation of the Proof of Stake protocol and a compromised system in which its deficiencies are eliminated. The Proof of Authority protocol, this protocol is generally used in private networks, as anonymity, one of the values offered by blockchain technology, remains in the background. Developed for centralized and few-node networks, Proof of Authority is less likely to be used in open networks such as Bitcoin.
Differences of Proof of Authority and Proof of Work
Proof of Work is a reconciliation process that proceeds through the procedure of miners verifying blocks and earning a block reward as a result. In this protocol, there is high energy usage due to mining devices. In the Proof of Authority protocol, energy consumption is very low due to the absence of mining.