Ethereum revolutionized the utility of blockchains by enabling developers to leverage smart contracts to create DApps. However, with so many building on the blockchain, it now faces issues related to network speed and scaling. While there are innovations currently in development to solve these issues, including Sharding, Raiden and Plasma, there are a few projects looking to expand upon the foundation that Ethereum built.
One such project is POA Network (POA), which is an open Ethereum sidechain with Proof of Authority consensus, reached by independent validators. This new public network provides a platform for smart contracts that are designed for speed, security and cost efficiency. POA has exceptionally low 5 second block times and no mining, as well as a regulated system of governance that leverage DApps to better reach consensus. Ultimately, POA aims to capture a significant portion of the small-to-medium size business blockchain market with their scalable, efficient network.
Interested in POA Network? Here’s a quick rundown of the project:
Platform & Development
In short, POA Network expands beyond the Ethereum core by leveraging a Proof of Authority consensus algorithm, which uses 12 public validators, each charged with creating blocks in a 12-block rotation. For each block, which are found every 5 seconds, one coin is created as a reward for validators and one coin for self-sustaining the network. This system works to provide an inexpensive platform for developers to build Etherum DApps, as transactions fees are significantly reduced.
Given that POA aims to become the go-to for small to medium-sized businesses to build blockchain applications, they have actively developed a number of supporting DApps, fueled by a crowdsourced bounty system. These DApps include decentralized applications for launch and governance of validators on POA Network, decentralized oracles for sovereign identity, and decentralized applications for network management. To name a few:
- Governance DApp (Currently Live): DApp for governance and managing a list of validators. Validators can propose ballots and vote for changes in the list.
- Token Wizard DApp (Currently Live): DApp for end-to-end serverless and trustless ICO campaigns. A few projects have been launched already through this DApp.
- Proof Of Bank DApp (In Progress): DApp to proof ownership of a bank account in the U.S. and link it with a wallet on an Ethereum network.
It’s interesting to note, given POA’s condensed consensus model, any hard forks of POA required signed legal documents and will be recognizable in a court system. The goal with this is to bring protections to participants of the network and to open new possibilities to decide how to deal with ongoing changes.
POA’s roadmap was well-detailed up until 2018, whereafter it becomes far less granular. Given that a large portion of the heavy development occurred in 2017, we will watch adoption trends closely as POA rolls out more networks and even interledger protocols to connect these networks.
The POA team looks to be well-balanced, led by technical expert and project manager Igor Barinov. Validators on POA Network are known, US-based public notaries who validate the blocks. POA requires full identification transparency to ensure that any party can easily cross-verify the identity of a validator in publicly available databases.
POA Network (POA) currently has a market cap of ~$105 million with a circulating supply of 204,058,860 POA and a total supply of 254,551,020 POA.
POA Network is admittedly an interesting project that is currently floating under the radar of many investors. Ultimately, long-term value creation will rely on POA’s continued effort to create tools for businesses to adopt its network. This value is definitely a function relative to Ethereum solving its scaling issues, as well as a number of competitors in the top 100 list.
More: What Is Oracles Network?
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Disclaimer: The author(s) of this article may have a position in one or more of the cryptocurrencies mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.