Proof of authority (PoA) selects consensus participants in advance. It fits permissioned networks, where a known and fixed group participates, rather than permissionless networks, where anyone may join. section 12.1.3 section 12.5
PoA matters because consensus protocols must control who participates:
- Known participants make classical Byzantine fault-tolerant consensus practical, while large participant sets increase communication, leader-election, and speed problems. section 12.1.3
- PoA contrasts with proof of stake, which selects participants dynamically according to the currency they hold. section 12.1.3
- It also contrasts with Bitcoin’s proof of work, which lets participants compete probabilistically to become participants and leaders. section 12.1.3
Figure 12.1 A centralized network can be seen as a single point of failure, whereas a distributed and decentralized network are resilient to a number of servers shutting down or acting maliciously. A permissioned network has a known and fixed set of main actors, while in a permissionless network, anyone can participate.
Compare permissioned networks with fixed main actors against permissionless networks where anyone can participate. section 12.1.3
