We’re seeing new altcoins and networks popping up all the time that are trying to solve the scalability issue associated with the blockchain.
The POA network has jumped into the fray with a different protocol called Proof of Authority that should be able to handle a 5 second block verification.
How To Buy POA
So you’re interested in buying POA? Currently, there is no way to buy POA directly with fiat, so the best way to buy POA is to first purchase Ethereum, transfer it to your chosen trading platform and change it to POA. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on Binance. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for POA/ETH and confirm.
3. On the POA/ETH trading section you can now choose how much POA you want to buy with your Ether. Once you have chosen your amount, press Buy POA and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of POA.
What is POA Network
Proof of Authority is interesting in many ways, not least of which is the removal of anonymity amongst validators. To be a validator on the network, one must be an active registered notary public in the US.
With the identities of the validators being public, they are more likely to act in the interest of the network.
It isn’t just the validation protocol that enhances transaction speeds. It’s the fact that the POA Network will run alongside other blockchains and allow for interchain communications.
This means that a dApp can be built on the Ethereum chain, but use the POA Network to reduce bottlenecks on the main chain. Instead of waiting for traffic to come down the same pipeline, the dApp can work independently from the main chain.
POA Networks, also called Oracle Networks, can be cloned. This has the benefit of being industry specific. Each blockchain can mold itself according to the needs of the businesses that will inhabit the ecosystem.
This is another way to defend a chain against bottlenecks and increase speed.
The Oracle Networks coin is called the POA and will be used to pay fees on the platform, including rewarding validators for securing the network.
As with any other native coin, the value of the coin increases or decreases according to how many users adopt the platform and use it.
How necessary is the POA Network?
For now, very.
As of the time of this writing, the Ethereum blockchain is too big and processing times are slowing down. The Ethereum team knows this, and surely must be working towards a way to scale and speed up the chain themselves. It isn’t really in the interest of Ethereum to leave it to other blockchains to figure this out. So far they haven’t done it. If they do find a way, then there will be less of a need later for other smaller chains.
Thus, it is an arms race to be the blockchain that solves the scalability issue and receives mass adoption before anybody else.
For this to truly happen, a new blockchain would have to be faster, cheaper and easier to send value across different chains, than any previous chain.
By using a cloning system, POA is unique. This creates a truly decentralized chain and solves the speed issue. It is able to scale horizontally and becomes easier for businesses to jump on board without needing to allocate a lot of resources. Resources meaning not only money, but also time spent trying to migrate to the blockchain and maintaining it.