Microsoft has announced an additional consensus mechanism for clients building Ethereum-based apps on Azure that does away with mining.
Microsoft’s “proof-of-authority,” mechanism notably replaces the proof-of-work mining process that is common in public blockchains.
Azure software engineer Cody Born wrote in a post on Tuesday, it is only applicable in a permissioned network scenario – that is, on private or consortium blockchains where only invited parties may participate as nodes.
Mr. Born explained: “An alternative protocol, Proof-of-Authority, is more suitable for permissioned networks where all consensus participants are known and reputable.
Without the need for mining, Proof-of-Authority is more efficient while still retaining Byzantine fault tolerance.”
Proof-of-authority consensus essentially requires the presence of invited parties as a proof of their participation in the decentralized network.