Delegated Proof of Stake (DPoS) is a consensus mechanism used in blockchain technology to keep the network synchronized. It is an improvisation of the Proof of Stake (PoS) consensus mechanism, and it works as an additional layer of voting to the traditional PoS protocol. DPoS is more democratic than PoS, and it is used as an alternative to the high energy-consuming Proof of Work (PoW) mechanism used by Bitcoin.
In 2014, American software developer and cryptocurrency entrepreneur Daniel Larimer introduced DPoS. A predetermined number of delegates or validators are chosen in the DPoS election procedure. The network's users rely on these delegates to validate each new block that is introduced to the system.
DPoS works by electing a certain number of delegates, often between 21 and 101 (depending on the network's strength). Participants or stakeholders in the network vote for their preferred network representative. A delegate can generate their own block of transactions to add to the network, and the chosen delegates or witnesses will validate the transactions of the adding block. Delegates are rewarded for successfully verifying additional blocks or by adding a new, legitimate block.
Each network participant (or stakeholder) receives the same number of votes as their coin holdings prior to voting, which is done using their coins or tokens. In order to cast a vote on their behalf, a stakeholder may also transfer coins to another stakeholder.
Each delegate in DPoS submits their block during the designated time frame. A delegate loses their standing and stakes in the network if they act maliciously or fail to validate their block, and another delegate steps in to continue the process. As a result, DPoS moves far more quickly than the Proof of Work technique.
DPoS has many advantages. As the network's validators are not restricted to a specific set of miners, it first lowers the possibility of centralization. Second, it offers a democratic procedure that enables all network users to participate equally in the approval of new transactions. Thirdly, DPoS requires less processing power than PoW, making it faster and using less energy.
DPoS has several restrictions, though. Given that they are in charge of upholding the network's integrity, it necessitates a certain amount of faith in the elected delegates. Furthermore, wealthier users who have a big stake in the network can influence the voting process, which could result in centralization.
DPoS is a significant enhancement to the blockchain technology's consensus mechanism, to sum up. It provides a quicker and more energy-efficient replacement for the PoW technique and allows a democratic procedure for the network's stakeholders to take part in transaction validation. Even though it has some drawbacks, DPoS has shown to be a dependable and efficient consensus mechanism in a number of blockchain networks.
