Delegated Proof of Stake (DPoS)
Delegated proof of stake (DPoS) is a consensus algorithm that allows for a more scalable and decentralized blockchain network. With delegated proof of stake, or DPoS, there are two types of users on the network: delegates and voters.
Delegates are elected by voters and can be replaced if they don’t perform their duties adequately. The delegate’s job is to secure the network and ensure that all transactions are valid.
To become a delegate, users must first stake their tokens to a delegates’ pool. Once they’ve staked their tokens, they can then vote for delegates. The delegates with the most votes are then chosen to validate transactions and produce blocks on the blockchain..
Voters are users of the network who haven’t staked their tokens to a delegates’ pool. Voters can vote for delegates, but they cannot become delegates themselves.
What's the Difference Between PoS and DPoS?
Delegated proof of stake (DPoS) is similar to proof of stake (PoS) but with a few key differences.
With PoS, all network participants are responsible for validating transactions and agreeing on the state of the ledger. This can lead to scalability issues, as all participants need to come to an agreement on the state of the ledger.
With delegated proof of stake, only delegates are responsible for validating transactions and agreeing on the state of the ledger. This allows for a more scalable network, as delegates can validate transactions and agree on the state of the ledger faster than all network participants.
To learn about DPoS in greater detail, head to our guide here.