Proof-of-Authority Algorithm Use Cases Grow: From Pharma to Games

Cointelegraph talked to technology companies to find out how PoA products work, and what benefits the use of this algorithm brings them.

As the name implies, in PoA, the authority of the participant is the guarantor of the transaction's validity.

Gamers can now voteOne of the use cases identified by using the PoA algorithm is the development of online games that can be scaled significantly while obtaining a consensus of authority.

Igor Barinov, technical lead at POA Network, explained to Cointelegraph that TokenBridge is to be integrated in several games like Clovers Network, allowing gamers to get access to liquidity of marketplaces or exchange items for ethers.

While these solutions use the PoA consensus algorithm to deliver game products to customers, the gamers themselves of Ethereum Express are its validators.

The MediLedger project uses an enterprise-suited version of the Ethereum blockchain, which is built using a modified Parity client and the PoA algorithm mechanism to track the origin of medicine.

Everyday commerceThe PoA algorithm has found its way into everyday commerce as well, with the Bancor project applying it in Kenya to alleviate poverty by providing local communities with the ability to buy and sell local currencies using credit cards or popular cryptocurrencies, involving 1,000 businesses and 20 schools.

Energy sectorThe energy sector is also applying the PoA algorithm with the Energy Web Foundation launching its own blockchain for a number of major energy companies, such as Mercados Electricos.

For corporate use onlyThe PoA consensus algorithm provides a mechanism that exempts administrators of complex computing operations, thus reducing electricity consumption and increasing network profitability.

"Due to the decentralized nature of most blockchain networks, the Proof-of-Stake consensus algorithm is not always suitable for certain enterprises and corporations. In contrast, PoA-based systems may represent the best solution for private blockchains, since the performance of this algorithm is significantly higher."