POA Network was created in April 2017, with the mainnet launched in December 2017. The high-level goal of the project is to provide fast and secure Ethereum sidechain, solving the scalability and connectivity issues in existing blockchain ecosystem. POA Network’s vision is to create an ecosystem of multiple networks designed for connectivity using bridges.
POA offers minimal transaction costs and faster transactions processing, compared to Ethereum. Their bridging technology allows users to bridge their tokens easily from one blockchain to another and back again, as well as converting their own POA Native Tokens from the POA Network onto the Ethereum network. POA offers both their own explorer and wallet, and has implemented on-chain governance.
POA Network allows for standalone networks to be launched with separate set of validators based on their governance system and trusted ceremony.
The network was launched in 2017 by the founding team and is currently run by the set of validators, voted in through the on-chain governance system. Project’s technical lead, Igor Barinov, is a developer and serial entrepreneur, who previously co-founded Block Notary, a notary service built on blockchain technology, which is used by a number of American and European banks.
POA Network is an open, public, permissioned network based on Ethereum protocol with Proof of Authority consensus, reached by independent pre-selected validators. A list of validators is managed by a smart contract with governance by validators. During an initial ceremony, master of ceremony distributed keys to 12 independent validators. They added 12 plus one more to reach initial requirements for the consensus. Independent U.S. public notaries with active commission license are the first validators in POA Network. A concerned third party can cross-validate validators' identities using open data sources and ensure that each validator is a good actor with no criminal records. In the Proof-of-Authority network, identity of individual validator and trust to independent and non-affiliated participants will secure the consensus.
Aura (Authority Round) is one of the Blockchain consensus algorithms available in Parity that is used to secure POA Network. It is capable of tolerating up to 50% of malicious nodes with chain reorganizations possible up to a limited depth, dependent on the number of validators, after which finality is guaranteed. This consensus requires a set of validators to be specified, which determines the list of blockchain addresses which participate in the consensus at each height. Sealing a block is the act of collecting transactions and attaching a header to produce a block.
A block is generated with an average time of 5 seconds. The emission rate for validators is 2.5% for the first year of the network. The network uses disinflation model, and emission will decrease every year. An additional 2.5% is added to support sustainability of the network.
Therefore, 2.5% of the network supply is generated as a reward for validators to secure the network. And 2.5% of total supply will be distributed to support sustainability. Validators will be able to propose areas of spending:
spend on R&D Foundation
Sustainability emission is governed by decentralized apps.
POA Network has also introduced cross-chain bridge that serves as a method of transferring POA native tokens from the POA Network to the Ethereum network. The POA to Ethereum transfer results in the creation of a newly minted token on the Ethereum blockchain known as POA20. The user also has the ability to transfer POA20 tokens from the Ethereum network back to the POA Network, which would result in the burning of the POA20 token and subsequent unlocking of the original POA native token on the POA Network. The POA20 token displays the exact same properties as the standard ERC20 token and allows it to be used in all the same places that offer ERC20 compatibility.
POA Network stack also includes an open-source block explorer tool for the Ethereum ecosystem called BlockScout. BlockScout offers a flexible API and support for ERC-20 and ERC-721 tokens. Additional features include smart contract verification, smart contract querying, and real-time tracking of block confirmations.