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What Is the Concept of ‘Incentive Compatibility’ in the Design of PoA?

Incentive compatibility means that the protocol's rules are designed so that participants acting in their own self-interest (maximizing profit) also act in a way that benefits the overall network (securing the chain). In PoA, the PoW miner is incentivized to find a block quickly, and the PoS validator is incentivized to sign the valid block, as both actions lead to a reward, ensuring the network progresses securely.

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