Proof of Staked Authority (PoSA) Definition - Glossary

Proof of Staked Authority (PoSA) is a consensus mechanism combining Proof of Stake and Proof of Authority principles.

Proof of Staked Authority (PoSA) is a hybrid consensus mechanism that combines elements of Proof of Stake (PoS) and Proof of Authority (PoA). In PoSA, validators are selected based on their stake and reputation within the network. Unlike PoS, where nodes are chosen solely by staking a large amount of cryptocurrency, PoSA also requires validators to establish their credibility, similar to PoA. This approach enhances security, scalability, and efficiency. It reduces the risk of centralization by ensuring that validators have both financial and reputational incentives to act in the network's best interest.