What is Proof of Authority (PoA)?

Proof of Authority (PoA) is a consensus mechanism utilized by many blockchain networks. PoA was originally created by Gavin Wood, co-founder of Ethereum and former Chief Technology Officer (CTO) of Ethereum. PoA is a consensus mechanism that leverages the value of identity and reputation instead of cryptographic assets or computational power. PoA relies on a limited number of nodes to verify transactions, and is often criticized for being too centralized. This trade-off is offset by remarkable scalability and transaction speeds.