What are the potential drawbacks or limitations of proof of authority in the crypto industry?

1 answers

• Nov 27, 2021 · 3 years ago
  Proof of authority (PoA) in the crypto industry has its drawbacks. It relies heavily on trusted authorities, which can be a potential point of failure. If one or more authorities become compromised or act maliciously, it can undermine the security and integrity of the network. Additionally, PoA may not be suitable for public blockchains where anyone can become an authority. It works better in private or consortium blockchains where the authorities are known and trusted. Despite these limitations, PoA can still be a viable consensus algorithm for certain use cases, especially when speed and efficiency are prioritized over complete decentralization.
  655328