Proof of Authority

Proof-of-authority (PoA) networks are used only when all blockchain participants are known. In proof-of-authority, each participant is known and registered with the blockchain. Such a blockchain is called a permissioned chain, as only computers that are part of this approved list of authorities are able to forge blocks. It is critical, therefore, that none of the authority computers is compromised, and each operator must take pains to ensure the integrity of their validator. This approach was originally shared by Gavin Wood of Parity Technologies as a different way of running an Ethereum-based blockchain.