Much has been made, and rightly so, about the consensus algorithms that blockchains use to build and maintain their transactional ledgers. While Bitcoin revolutionized the concept of a virtual currency through its Proof of Work consensus algorithm, it became apparent that Proof of Work and its ability to scale faced some very prominent limitations as the currency rose in value and the network exploded in popularity and transaction volume.
Crypto Education – Proof of Authority Explained | Animation | Cryptomatics
In response to the trials and tribulations of Proof of Work, numerous other consensus algorithms have been developed and deployed on other blockchains. You’ve probably heard of Proof of Stake, which is currently seen as the most viable successor to the Proof of Work protocol, but even Proof of Stake has its own drawbacks.
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In this article, we will discuss another consensus algorithm currently in use by organizations such as JP Morgan and others, namely the Proof of Authority Protocol. We will also discuss how this algorithm relates to Proof of Work and Proof of Stake.
