Delegated Proof-of-Stake (dPOS) Definition
Delegated Proof of Stake (DPoS) is a consensus algorithm where the users of a cryptocurrency vote for “witnesses” that will validate transactions and create blocks on the blockchain network. It is considered a more democratic, efficient, and fair system trying to mitigate the issues associated with traditional PoS and PoW systems.
Delegated Proof-of-Stake (dPOS) Key Points
- DPoS is a blockchain consensus mechanism used to confirm transactions and produce new blocks.
- It’s a consensus model where coin holders vote to elect network witnesses.
- These elected witnesses validate transactions and secure the network.
- DPoS is considered to be more democratic and efficient than other consensus algorithms like PoW and PoS.
What is Delegated Proof-of-Stake (dPOS)?
Delegated Proof of Stake (DPoS) is a method designed in order to secure a blockchain by ensuring representation of transactions within it. It emphasizes extensive participation and delegation of power, with a voting system that seeks the most reliable and honest nodes for electricity to be expended. It is designed to be more efficient than current consensus algorithms, such as Proof of Work (PoW) and Proof of Stake (PoS).
Why Delegated Proof-of-Stake (dPOS) is used?
The main reason why DPoS is used is because it’s more energy efficient and democratic than PoW and PoS. The consensus protocol provides better decentralization, as more people can participate in the validation process. Moreover, the selection of validators through voting systems prevents monopolization of the network by a small group.
Who uses Delegated Proof-of-Stake (dPOS)?
Delegated Proof of Stake (DPoS) is used by different blockchain platforms such as Bitshares, EOS, and Steem, seeking faster, more efficient, and more democratic consensus mechanisms. Any cryptocurrency network that struggles with scalability issues can adopt DPoS to boost its capacity and speed without compromising on security.
When is Delegated Proof-of-Stake (dPOS) used?
DPoS is used when a transaction is made on the blockchain network. The elected witnesses validate the transaction, ensure its compliance with the network’s rules, and then add it to a block. Once this block is completed, it’s added to the blockchain. This process ensures both the reliability and accuracy of every transaction.
How does Delegated Proof-of-Stake (dPOS) work?
In a DPoS system, cryptocurrency holders vote for a certain number of delegates that they trust to validate transactions and create blocks. These delegates are responsible for maintaining the network and are the ones actually doing the “work” in the system. If a delegate is found to be dishonest or unreliable, they can be voted out of their position. The aim of this is to create a more democratic system, ensure the reliability of the network and reduce the chance of a small number of entities controlling the majority of the network’s power.
