How does Delegated Proof of Stake work?

Created by Daniel Larimer in 2014, Delegated Proof of Stake utilizes a voting system where users stake tokens ...to vote for delegates or witnesses.The elected delegates are responsible for block creation and verification, as well as network security. The specific number of delegates required for block creation will vary from project to project, but in most cases, there are between 20 and 100 delegates selected for each new block. Once the block is created and the data verified, the delegate receives a reward, which is shared with the delegate’s voters. When it comes to the voting system, the more tokens a user stakes, the stronger the voting power they have, just like in PoS. It’s important to note that voters maintain control over the system, meaning the users can also vote out delegates if they make malicious attempts on the network or work with inefficiency or dishonesty.

Usually, delegates with a strong reputation are more likely to be elected as witnesses as they are more likely to genuinely protect the best interest of the network and the community.

What are the benefits of DPoS?

As a form of PoS, DPoS naturally brings to the table a number of benefits when compared to PoW. As an upgraded version of PoS, DPoS can even exceed the potential of traditional ... Proof of Stake. Here are the mechanism’s main advantages in more detail. Scalability Under DPoS, blockchains can achieve a high transaction capacity, making the consensus mechanisms faster than the majority of its alternatives. In addition, it takes little time to set up block producers, which directly improves one of blockchain’s biggest challenges – scalability. Affordability and sustainability Delegated Proof of Stake omits the reliance on expensive and powerful equipment required in other mechanisms, like PoW, for network operation. Therefore, the expenses of maintaining the network are reduced. In addition, DPoS does not require large amounts of power, making DPoS networks sustainable. Reward distribution As mentioned above, users who elect delegates for block creation and transaction verification also receive part of the rewards earned for successful validations. This motivates users to only elect delegates who are likely to perform well in order to receive higher rewards. This not only means that all parties are financially rewarded, but that the safety of the system is the main objective of all sides. Democratic approach .The voting system in DPoS is highly democratic, where token holders can openly share their opinions by placing a vote on a trusted and reputable delegate.

Blockchains utilizing the DPoS Consensus Mechanism

Proof of Stake currently outperforms Delegated Proof of Stake in terms of popularity and use. However, there are still a number of blockchain... projects who are relying on this form of consensus protocol. EOS - EOS is arguably the most high-profile network using DPoS consensus. Hardly surprising, given that the inventor of DPoS Daniel Larimer also co-founded Block.one – the company that raised $4 billion to build the EOS blockchain. EOS uses a small set of only 21 delegates who are tasked with signing and validating transactions and adding new blocks. The decision to rely on a small number of delegates was motivated by Larimer’s experience with his earlier DPoS project BitShares, which started with 100. According to Larimer, having a large set of delegates is detrimental to the voters attention and ability to assess the performance of the delegates. Larimer also founded Steem, a DPoS blockchain pitched as a platform for decentraized social media apps. TRON - TRON is one of the biggest blockchain-based platforms globally and has its own architecture for verifying transactions. In the TRON network, delegates are called Super Representatives. Users can stake TRON coins to vote for five Super Representatives at every election, considering that elections are organized every 24 hours. The top 27 candidates that have b