Shine Proof of Authority consensus

The PoA consensus algorithm leverages the value of identities, which means that block validators are not staking coins but their own reputation instead. Therefore, PoA blockchains are secured by the validating nodes that are arbitrarily selected as trustworthy entities. The Proof of Authority model relies on a limited number of block validators and this is what makes it a highly scalable system. Blocks and transactions are verified by pre-approved participants, who act as moderators of the system.

PoA consensus algorithm may be applied in a variety of scenarios and is deemed a high-value option for logistical applications. When it comes to supply chains, for example, PoA is considered an effective and reasonable solution. In PoA, transactions and blocks are validated by approved accounts, known as validators. Existing validators can to add or remove validators. PoA has immediate finality. In PoA, there are no forks and all valid blocks are included in the main chain.

Shine PoA

Shine uses a Proof of Authority based consensus model which is based off the EOSIO protocol. By combining the advantages of PoA

Shine has implemented a Proof of Authority consensus mechanism by using the features available at the system contracts level with the EOSIO protocol.

Use cases for PoA

Banking

Proof-of-Authority is often favoured by private or consortium blockchains: players in the banking sector, such as JP Morgan with the JPMCoin, use this technology to facilitate the audit of their funds movements, mainly for accounting purposes, with reduced costs.

”Proof-of-Authority is often favoured by private or consortium blockchains”

Using a public blockchain such as Bitcoin, Ethereum or, as some would like Ripple, seems inconceivable given the state of the market and the refractory mentalities of the banking sector. To bring together actors who do not naturally trust each other, a consortium blockchain based on Proof-Of-Authority remains the most credible solution.

Pharma supply chain

Retail giant Walmart has already incorporated MediLedger into its tracking system that will allow increasing the efficiency of supply chain management. 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. The company is currently testing various approaches with the goal of creating an interoperable electronic system for tracking and validating drugs by 2023.

Food supply chain

Consumer goods, such as food products, are also being transferred onto blockchain in their supply chains — and Walmart is once again in the lead. The giant’s Chinese branch has teamed up with PwC and VeChain to track the movement of goods. On June 25, Walmart China reported that by 2020, tracking of products via blockchain technology will encompass over 40% of all of their vegetable sales and 12.5% of seafood product sales.

Walmart is not alone in its strive for blockchain application in food product tracking, as the United Nations World Food Program has also applied the Parity Ethereum network to track deliveries and accounting for balances without the need for a third-party financial services provider.

Energy sector

The energy sector is also applying the PoA algorithm with the Energy Web Foundation (EWF) launching its own blockchain for a number of major energy companies, such as Mercados Electricos. The application will allow companies to significantly increase energy efficiency and ensure regulatory compliance.

According to the founders of the company, getting started is extremely easy: Anyone can download the program and start using the smart grid. In addition, each smart home connected to blockchain will allegedly receive its identification number with a wallet tied to it. Those individual wallets can be tied to an electric vehicle and its charging station.

While today’s owners of electric cars have to use a lot of applications from various charging stations, with blockchain, a station can automatically find out who the driver is and whose wallet should be used for payment by using the car’s ID number, as stated by the EWF.

In the long run, blockchain can enable decentralized energy trading, as seen from the pilot program in Uttar Pradesh. If consumers begin to generate more energy on their solar roofs than they need, they will be able to sell the surplus through a distributed registry system at real-time regulated prices.