We are aware that blockchain is a distributed, decentralized network that offers security, anonymity, and immutability. Despite the absence of a central authority to confirm and validate crypto transactions, every blockchain transaction is regarded as being 100% safe and validated. The presence of the consensus protocol, a fundamental component of every blockchain network, makes this feasible. A consensus algorithm is a process that allows every peer in the blockchain network to agree on the distributed ledger’s current state.
Many know about the Proof-of-Work (PoW) consensus model, which is employed by Bitcoin (BTC), Dogecoin (DOGE),etc. and Proof-of-Stake (PoS) which is used by Ethereum (ETH), Cardano (ADA), etc. However, there is another consensus model called Proof-of-Authority (PoA) and Proof-of-Stake Authority (PoSA), about which many are not aware.
What is Proof-of-Authority?
Unlike proof-of-stake, which uses money as the stake, proof-of-authority uses the identification of the validator as the stake.
The PoA method makes validation easier and uses less energy to maintain the network. On the other side, staking in the PoS consensus process encourages decentralization by allowing user involvement in network security. The PoA method maintains connectivity between nodes without requiring puzzle-solving. Therefore, the validators don’t require specialized hardware to maintain the network.
The speed at which the authorities validate transactions is increased by the proof-of-authority algorithm. The blockchain reports a higher transaction rate than PoS due to the predictable block production dependent on the amount of validators. The PoA network is more resistant to attacks than the PoS consensus. This is because users cannot break the network even with 51% of the processing power.
What is Proof-of-Stake Authority consensus in crypto?
PoSA is a consensus model that merges the capabilities of PoS and PoA. It sacrifices network security and decentralization in favor of faster block times and lower expenses. This is seen to be an intriguing consensus method for the blockchain and crypto industry.
PoSA is used by the Binance Smart Chain (BSC, now BNB Chain). Due to the PoSA consensus mechanism, a user cannot instantly start validating transactions of the Binance Smart Chain by themselves, as they might with Bitcoin