PoA and the national blockchain infrastructure race in 2026

2026 marks an acceleration phase for national blockchain infrastructure globally. In Vietnam, the Ho Chi Minh City International Financial Centre (VIFC-HCMC) officially began operations under Resolution 222/2025/QH15, opening a testing ground for blockchain, digital assets, and innovative financial models. At the same time, NDAChain recorded over 5 million verification transactions and reached a processing capacity of approximately 1,200 transactions per second, while NDAChain's decentralized identity method did:nda was officially registered in the W3C DID Method Registry.

🔑 Read more: What is W3C DID? Why does the Internet need a Decentralized Identifier Standard?

As blockchain moves from the pilot phase to national-scale operation, the question is no longer whether the technology is viable, it is how to process millions of transactions while ensuring long-term performance, transparency, and legal compliance. The heart of that challenge lies in the consensus mechanism.

Among the most common models today Proof of Work (PoW), Proof of Stake (PoS), and Proof of Authority (PoA) — the majority of national blockchains and public data infrastructure worldwide have chosen PoA. From the EU's EBSI and China's BSN to Vietnam's NDAChain, PoA is becoming the preferred consensus mechanism for systems that demand high performance, clear governance, and transparent legal accountability. So what is Proof of Authority, and why do national blockchains choose it?

What is Proof of Authority? Definition and operating principles

Definition

Proof of Authority (PoA) is a blockchain consensus mechanism in which the right to validate transactions and create blocks is granted to a group of validator nodes that have been clearly identified, vetted, and authorized. Rather than relying on computational power as in Proof of Work (PoW) or staked assets as in Proof of Stake (PoS), PoA operates on the basis of the reputation, identity, and legal accountability of the organizations participating in the network.

The concept of PoA was proposed by Ethereum co-founder Gavin Wood in 2017 and quickly became a popular choice for enterprise blockchains, consortium blockchains, and national blockchains. In these environments, the identity of validators does not need to be anonymous, it must be transparent, verifiable, and legally accountable. This characteristic makes PoA well-suited for public data infrastructure, national digital services, and blockchain ecosystems requiring high performance and clear governance.

How Proof of Authority works

PoA operates through four core steps.

First, validator selection: organizations meeting the requirements for technical capability, reputation, and legal accountability are granted the right to operate validator nodes.

Second, block proposal: in each consensus round, the system selects a validator according to a predefined algorithm to create a new block.

Third, validation and voting: the remaining validators check the block's validity and cast votes to confirm it. Once the consensus threshold is reached, the block is recorded on the blockchain with near-instant confirmation time.

Fourth, monitoring and penalty handling: all validator activity is transparently recorded, and violations can result in suspension or removal from the network.

By using identity-based consensus rather than computational power or staked assets, PoA enables fast transaction processing, low resource consumption, and token-free operation. These are the core distinctions between Proof of Authority (PoA) and Proof of Work (PoW) or Proof of Stake (PoS).

🔑 Read more: Comparing PoW, PoS, and PoA: Which Consensus Mechanism for Layer 1 Blockchain?

Why Proof of Authority suits national blockchain

High performance and scalability for national infrastructure

National blockchain must meet the needs of millions of users, enterprises, and public service systems operating simultaneously. While Bitcoin processes only around 3–7 transactions per second and Ethereum around 15–25, Proof of Authority (PoA) networks can achieve performance exceeding 1,000 TPS with confirmation times measured in seconds. This is a prerequisite for blockchain to serve as the verification layer for digital identity, traceability, online public services, and e-commerce at national scale.

According to the World Economic Forum (WEF), blockchain can significantly reduce operational costs and increase supply chain transparency. However, for national-scale deployment, blockchain infrastructure must guarantee high performance, strong stability, and the ability to handle continuous transaction volumes without congestion. This is precisely why Proof of Authority (PoA) has become the consensus mechanism chosen by many national blockchains.

No token, no speculative risk

One of the most important reasons Proof of Authority (PoA) is chosen for national blockchains is that it does not depend on tokens to operate. Unlike Proof of Stake (PoS), where validators must hold and stake tokens, PoA eliminates risks related to speculation, price volatility, and the legal complexities surrounding digital assets.

For systems serving e-government, digital identity, citizen data, or national health records, stability and controllability are always prioritized over financial incentive mechanisms. In the PoA model, validators do not participate to earn block rewards — they operate based on their role, responsibilities, and authorization within the network's governance framework. This characteristic makes Proof of Authority the appropriate consensus mechanism for national digital infrastructure models where the state leads, enterprises participate, and citizens benefit.

Clear legal accountability and transparent governance

A standout advantage of Proof of Authority (PoA) is that every validator has a verified and publicly known identity. As a result, all transaction validation activities can be traced, audited, and held legally accountable when necessary. This is a significant distinction from public blockchains, where nodes operate anonymously, making monitoring and accountability enforcement difficult.

For national blockchain and digital data infrastructure, governance transparency is a mandatory requirement. In Vietnam, the legal foundation for this model has been established through the 2024 Data Law, the 2025 Personal Data Protection Law, the Digital Technology Industry Law effective from January 1, 2026, and Decision 3090/QĐ-BKHCN on the National Digital Architecture Framework. These instruments create the legal basis for establishing the accountability of parties involved in operating national data and blockchain infrastructure.

PoA in the world: lessons from EBSI and BSN

Proof of Authority (PoA) is the consensus mechanism used in many national and government blockchain infrastructures worldwide. The EU's EBSI (European Blockchain Services Infrastructure), connecting 27 member states along with Norway and Liechtenstein, operates with an approved validator network, complies with GDPR, and stores only cryptographic proofs rather than personal data on the blockchain.

🔑 Read more: What Is EBSI? The Role of EBSI in Europe’s Digital Infrastructure

In China, BSN (Blockchain-based Service Network) is also built on a similar model. The system does not support cryptocurrency or speculative tokens, while validator nodes are selected and managed under a controlled mechanism to serve public applications and national digital infrastructure.

🔑 Read more: What is BSN (Blockchain-based Service Network)? A Complete A–Z Overview

Estonia, meanwhile, deploys KSI Blockchain to protect citizen data using cryptographic timestamping. The system does not store personal data on-chain but uses blockchain as the integrity verification layer for more than 99% of digitized public services.

🔑 Read more: Estonia: The first country to bring blockchain into national healthcare

Despite differences in architecture and application scope, EBSI, BSN, and KSI share one common principle: a consensus mechanism based on authorized validators with clear identities and legal accountability. This is also the core principle behind Proof of Authority (PoA) and the development direction of NDAChain.

🔑 Read more: Comparing national Layer 1 blockchains: how NDAChain, EBSI, and BSN lead the way

NDAChain and the PoA-qBFT mechanism for national blockchain infrastructure

What is PoA-qBFT?

NDAChain does not use standard Proof of Authority (PoA), it deploys PoA-qBFT (Proof of Authority combined with Quorum-based Byzantine Fault Tolerance) to meet the requirements of national data and blockchain infrastructure. In essence, this mechanism requires a minimum consensus ratio from validators before a transaction or data block is confirmed, while maintaining stable operation even when some nodes encounter failures or are attacked.

The strength of PoA-qBFT lies in its ability to guarantee instant finality. Once a transaction is confirmed, data is permanently recorded on the blockchain and cannot be reversed or the chain reorganized, as can happen on Proof of Work (PoW) networks. This is especially critical for applications such as digital identity, traceability, data verification, electronic records, and digital transactions between government agencies and enterprises.

By combining the high performance of PoA with the fault tolerance of BFT, PoA-qBFT becomes the appropriate consensus mechanism for national blockchain, where simultaneous requirements for processing speed, stability, auditability, and data reliability must all be met.

49 public-private validator nodes operating the network

NDAChain is developing 49 public-private validators, forming a national-scale data verification network. From the National Data Association to leading enterprises such as Sun Group, Zalo, Masan, MISA, Sovico, and VNVC.

This model reflects the philosophy of "state-led, enterprise-participated, citizen-benefited," where each validator not only participates in transaction validation but also bears legal accountability for the network's operations.

Validators are selected under the coordination of the National Data Association, based on their technological capability, role in the digital ecosystem, and commitment to complying with the national blockchain's governance standards. This helps NDAChain maintain transparency, reliability, and stable large-scale operation.

Performance of 1,200 TPS and over 5 million verification transactions

In 2026, NDAChain recorded two important milestones: surpassing 5 million verification transactions and reaching a processing capacity of 1,200 transactions per second (TPS). This demonstrates the real-world operational capability of the PoA-qBFT mechanism, while placing NDAChain among the high-performance Layer 1 blockchains in the region.

🔑 Read more: What is Layer 1 blockchain? How it works and its pivotal role in the blockchain ecosystem

At this performance level, NDAChain can simultaneously support multiple national-scale scenarios including digital identity, data verification, traceability, smart contracts, electronic invoices, and digital public services. In other words, the network is designed to serve tens of millions of users and enterprises while maintaining processing speed, stability, and long-term scalability.

🔑 Read more: Vietnam’s National Blockchain Platform Surpasses 5 Million Verified Transactions

Challenges of Proof of Authority and how NDAChain addresses them

Proof of Authority (PoA) is not without limitations. The biggest challenge of this mechanism is that the number of validators is limited, resulting in a lower degree of decentralization compared to Proof of Work (PoW) or Proof of Stake (PoS). Without transparent governance mechanisms and effective oversight, the network may face the risk of power concentration among a small group of validators.

To address this challenge, NDAChain applies a multi-layer governance model. At the strategic level, the National Data Association plays the role of ecosystem coordinator, setting the development direction and participating in the validator selection process. In addition, a mechanism for publicly disclosing operational information and receiving feedback from validators, participating organizations, and users helps strengthen transparency and oversight capability.

This model draws on experience from national blockchain infrastructures such as the EU's EBSI and China's BSN, while being adapted to Vietnam's legal framework and national development direction under Resolution 57-NQ/TW on science and technology, innovation, and digital transformation. As a result, NDAChain aims for a balance between performance, transparent governance, and digital trust at national scale.

Proof of Authority and Vietnam's data economy roadmap for 2026–2030

As Vietnam's digital economy is forecast to reach $90–200 billion by 2030 and global data volumes continue to grow exponentially, data verification is becoming a foundational requirement of the digital economy. In an environment where data is continuously shared, exchanged, and utilized, a reliable verification layer is essential to ensure transparency, reduce verification costs, and limit fraud risks.

In this context, Proof of Authority (PoA) and NDAChain's PoA-qBFT mechanism serve as the digital trust layer for national data infrastructure. This is not merely a choice of blockchain technology, it is the foundation for building a national-scale data verification, sharing, and governance mechanism that balances performance, transparency, and data sovereignty.

As sectors such as digital identity, traceability, enterprise data, public services, and AI become increasingly dependent on verifiable data, the role of national blockchain will become ever clearer. In the data economy development roadmap for 2026–2030, PoA-qBFT is designed to become one of the core foundations helping Vietnam build a digital trust infrastructure, drive innovation, and achieve sustainable digital economic growth.

👉 Learn more and register to experience NDAChain at ndachain.vn to explore how national blockchain supports data verification, digital identity, and real-world data economy applications.