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What is the validation algorithm? Pros and cons of the proof-of-work algorithm

What is the validation algorithm? Pros and cons of the proof-of-work algorithm

One of the most efficient methods in the blockchain space is the Proof-Of-Authority algorithm, which we are going to discuss in this article, although it also has some weaknesses; So, to understand these weaknesses, it is better to stay with us. Of course, it can be said that the PoA algorithm is one of the best solutions that is used for centralized institutions and even small ecosystems, and therefore there are many networks that use proof-of-work and proof-of-stake models for network consensus; Of course, there are other methods, such as the proof of credit algorithm, which have their own fans, and in the rest of this article, we will go into more detail about the advantages and disadvantages of the proof of credit algorithm, stay with us.

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What is the validation algorithm?

What is the proof of credit algorithm or PoA? As we said, it is one of the efficient consensus methods in the world of blockchain, which does not provide the act of confirming transactions to all users, but allows limited users. This algorithm has one or more validator nodes that are responsible for creating new blocks and it is better to know that they are created to process transactions. The structure and architecture of the network may commit these new blocks by the vote of validators or by the vote of network members.

In this algorithm, there is no competition among the trust meters, but this happens in the proof-of-work algorithm, which is also called the mining algorithm. If you don’t know why in this method, electricity consumption is minimized because this algorithm does not need hardware processing power; Now that we have answered the question of what PoA is, we want to discuss how it works.

Read more: What is Frax cryptocurrency?

How the authentication algorithm works and some features

If you need information about the performance of this algorithm and are looking to understand it, this article will help you to gather knowledge about its features and also its performance, and another best strategy that will help you earn money in this way is scalping. It is trading. The function of this model is that it does not deposit currencies, but uses people’s credit to make transactions and create new blocks. In the validation algorithm, the rights to launch new blocks are assigned to spheres that have shown the competence to do this, and to obtain this power and the ability to produce new blocks, spheres need to perform initial authentication.

To prevent the access of malicious nodes that may cause problems to the system’s performance; The PoA algorithm first randomly selects network credentials, whose main name is validator, by performing a very difficult process, and then places the nodes that have already been active in validating to select or vote for new nodes and confirm them. As we said, this prevents the access of damaged nodes.

Of course, the method for selecting validators in the proof of stake algorithm; It is considered equally for all users who operate in this network, that is, they are selected fairly. The main use of the proof of credit algorithm is to help private organizations that want to build their own chain, and it is generally considered a consensus mechanism.

Read more: The best digital currency staking sites

History of authentication algorithm

The production year of the validation algorithm goes back to 2017 and the person who created this mechanism is Gavin Wood. In his career, this person has also collaborated with the famous Ethereum project, and it is better to know that this person also founded a famous project called Polkadata. Kevin Wood thought of creating this algorithm when on the 24th of February, 2017, the Ethereum test network called Rapsten was attacked by a denial of service. This network was originally for Ethereum blockchain network developers to test smart contracts before they went live on the network.

After the test network was attacked, a new test was included for this network, as Kovan, which was implemented using the validation algorithm; At that time, PoA was only used to prevent dos attacks or denial of service. With the passage of time and having multiple capabilities, it was able to bring more services to itself. You can also visit the How to mine Ethereum site for information on the best ways to get Ethereum.

Advantages and disadvantages of the authentication algorithm

This algorithm has advantages and disadvantages for blockchain networks, which we will present in the rest of this article; Also, if you want to earn dollars with guaranteed formulas, you can go to the trading strategy training course.


  • The speed of the proof-of-credit algorithm is high and it also receives less fees than the proof-of-work and proof-of-stake algorithms.
  • Network operations have proofs of validity that are independent of the number of actual nodes in the network.
  • It is also better to know that the scalability of networks that have proof of credit is greater than the blockchain networks of proof of stake and proof of work.
  • Another advantage is that it is 51% resistant to DAS attacks.
  • It is also known as proof of authority due to the high efficiency of the algorithm of proof of credit in the blockchain network.


  • This algorithm, with all its services, advantages and efficiency, has its disadvantages, which we will provide information about the disadvantages of this network in this article.
  • The networks that depend on the algorithm of proof of validity lack decentralization, which causes the identity of the decentralized blockchain network to suffer.
  • This algorithm does not guarantee any resistance against censors, which means that the information can be changed in this algorithm.

Last article

This algorithm was created in 2017, and as we said, the person who created it is Kevin Wood, and this person collaborated with the famous Ethereum project. He started building the authentication algorithm when the experimental network called Rapsten was attacked. Also, this algorithm has advantages and disadvantages; For example, the proof-of-credit algorithm receives a lower fee than the proof-of-work and proof-of-stake algorithms.

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