What Is the Concept of 'Incentive Compatibility' in the Design of PoA? ⎊ Path

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.

Who Are the Main Participants in the CDS Market and What Are Their Roles?

How Does Regulatory Uncertainty around Stablecoins Affect Derivatives Market Participants?

How Does the Concept of a “Soft Fork” Relate to Consensus Mechanism Changes like Adopting PoA?

Can the PoW Part of PoA Be Subject to a ‘Difficulty Bomb’?

What Is a ’51 Percent Attack’ and How Do Consensus Models like PoA Try to Prevent It?

How Do Other Blockchains Achieve EVM Compatibility?

What Is the Trade-off a CCP Faces When Setting the Margin Level?

How Do Hybrid Models like PoA Differ from Pure PoS in Terms of Network Security?