Proof of authority (PoA) is an algorithm used with blockchains that delivers comparatively fast transactions through a consensus mechanism based on identity as a stake.
[citation needed] The most notable platforms using PoA are VeChain,[1] Bitgert,[2] Palm Network[3] and Xodex.
The term was coined by Gavin Wood, co-founder of Ethereum and Parity Technologies.
[5] With PoA, individuals earn the right to become validators, so there is an incentive to retain the position that they have gained.
On the other hand, PoA only allows non-consecutive block approval from any one validator, meaning that the risk of serious damage is centralized to the authority node.