Proof Of Staked Authority (PoSA)

Proof of Staked Authority (PoSA) is a combination of Delegated Proof-of-Stake (DPoS) and Proof-of-Authority (PoA) consensus mechanisms.

Binance Smart Chain (BSC) relies on Proof-of-Staked Authority.

DPoS is a staking model where interested parties put up a stake, or some amount of the network’s native token, in hopes of becoming a “validator”, who validate transactions and create blocks.

The number of validators in a DPoS network is voted on by all token holders.

P0A refers to the picking of validators by a central authority.

In the case of Binance Smart Chain (BSC), that central authority is Binance.

The exchange does the work of making sure the interested validators are worthy of the position before any token holders are able to vote.

The combination of DPoS and PoA helps to create a network with ultra-fast network throughput.

BSC has a block time of 3 seconds, compared to Ethereum’s 10-19 seconds block time and Bitcoin’s 10 minutes block time.

Related Terms

Binance Coin (BNB)

The cryptocurrency created by Binance exchange, the world’s largest centralized cryptocurrency exchange (CEX) by trading volume.. BNB is a utility token that can be traded like any other cryptocurrency, but is also used to pay for goods and services, participate in token sales, buy virtual gifts, reduce trading fees, make loans and transfers and make credit card payments.

Solana (SOL)

Solana is a decentralized blockchain platform similar to Ethereum, that is built with a hybrid consensus protocol that includes both delegated proof-of-stake (DPoS) and proof-of-history (PoH) and offers smart contract capabilities.

Polkadot (DOT)

Polkadot (DOT) is an open-source blockchain protocol for cryptocurrencies, dubbed the “blockchain of blockchains”, that allows different, incompatible networks to communicate with each other and share data, using a multichain design.

Genesis Block

The very first block or first few blocks recorded on a blockchain or blockchain-based protocol. The genesis block is often called Block 0 or Block 1. The genesis block sets the foundation for the rest of the blocks that are added to form a chain of blocks. That’s where we get the word “blockchain”. The most famous genesis block, and the very first Bitcoin block, called the Genesis Block, was created on January 3rd, 2009, by Bitcoin’s infamous and mysterious creator, Satoshi Nakamoto. Some consider this date to be the start of the cryptocurrency revolution – the start of it all!

Binance

Binance is the largest cryptocurrency exchange by daily trading volume in the world. It experienced US $34 trillion in trading volume in 2021. The Binance trading platform is known for low trading fees, a large number of supported cryptocurrencies, and a large number of order types, including Limit orders, market orders, stop-limit orders, trailing stop orders, post-only orders, peer-to-peer trading, margin trading, and one-cancels-the-other orders