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    Delegated Proof of Stake (DPoS)

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on November 19, 2022 12:10 PM

    Updated on January 10, 2023 1:03 PM

    Delegated Proof of Stake (DPoS) or Proof of Delegated Participation (DPoS) is a blockchain technology scaling solution. It also increases the security of a system better than PoW.  
    Delegated Proof of Stake (DPoS)
    Source: Unsplash

    A consensus method called Delegated Proof of Stake (DPoS) is a version of the traditional Proof of Stake (PoS) system. With DPoS, which is developed from PoS, network users can elect delegates to validate blocks.

    What is Delegated Proof of Stake?

    Delegated Proof of Stake (DPoS) is another good development of the Proof of Stake (PoS) idea, in which network users pick delegates to validate the following block by casting votes. Witnesses and block producers are other names for delegates. 

    By combining your tokens into a staking pool and tying them to a specific delegate, you may vote on delegates using DPoS. You use a staking service provider to stake your tokens in a staking pool rather than physically moving them to another wallet.

    The delegates of one block might not be the delegates of the next since each new block only has a certain number of delegates (most protocols select between 20 and 100). The transaction fees from the verified block go to the elected delegates, who subsequently distribute them to the users that pooled their tokens in the winning delegate's pool. 

    Your portion of the block reward increases the more you stake. Each user's stake determines how much of the block reward they will receive, thus if your stake is worth 5% of the overall staking balance, you will receive 5% of the block reward.

    How Does Delegated Proof of Stake (DPoS) Work?

    Delegates are chosen by network users who cast ballots, and they validate blocks. These delegates, sometimes known as "witnesses" or "block producers," are limited in number and are subject to change if new delegates are elected in their place.

    In DPoS, network members may pool tokens into a staking pool and cast a vote for the specific delegate they like. Users of the network can stake using a staking mechanism or service provider rather than sending their tokens to a specific wallet while doing so.

    Delegates play a crucial role in ensuring the accuracy of the transactions because if they successfully validate the block, they are rewarded with transaction fees that may be given to the people who voted them in. A person might obtain a higher allocation the more they are able to stake.

    The amount of the total stake that a user represents affects the payment they get from their delegate. For instance, if a user only contributes 10% to the overall stake pool, they might still be eligible for up to 10% of the prize.

    Blockchain Protocols Using DPoS

    Delegated proof of stake is one of the most useful consensus mechanisms. let's see some examples of DPoS.

    TRON

    Delegates are referred to as Super Representatives on this network. A person can cast five SR votes every election when they stake TRON tokens. Every 24 hours, there will be one of these elections. As witnesses, 27 of the top applicants will be selected.

    COSMOS

    Delegates on the Cosmos network are known as Validators. A hundred of these validators can confirm the transactions that take place. Eventually, Cosmos wants to decentralize its blockchain even more by raising the number of Validators to 300.

    EOS

    All delegates on the EOS network are referred to as block producers. After two minutes and six seconds have passed, a vote is cast. A user can cast their vote for up to 30 candidates after staking some EOS coins. Then, exactly 21 candidates are chosen. Each block producer must have hardware that meets the minimum standards, which include 8GB of RAM.

    The below table shows how many delegators contribute to the network:

    Blockchain

    Number of Witnesses

    EOS

    21

    BitShares

    101

    Steemit

    21

    Lisk

    101

     

    Advantages of Delegated Proof of Stake

    Voting Power – Delegates are encouraged to perform well since users who stake have the ability to elect them as block producers. They may be voted out if this occurs. This promotes accountability since only the most successful and trustworthy delegates are chosen or kept.

    Fast — Due to the network's cap on the number of delegates needed, DPoS reaches an agreement more quickly. Depending on the blockchain, there are typically 20 to 100 delegates, and this small number of delegates enables the network to establish agreement more quickly than more conventional PoS systems and PoW networks.

    Scalable — Unlike PoW, the DPoS consensus approach is more scalable since it doesn't need hardware to provide hashing power. Staking coins will provide you access to the majority of DPoS networks.

    Reputation-based — Delegates are chosen democratically, allowing them to establish a reputation for dependability, which is a major factor in why users choose to vote for them rather than just the people with the biggest investments.

    Disadvantages of Delegated Proof of Stake

    • Delegators must be well-informed and choose trustworthy witnesses in order for the network to operate and make decisions effectively.

    • A small number of witnesses may cause the network to become more centralized.

    • Weighted voting issues are possible with the DPoS blockchain. Users with a lower stake may choose not to participate in voting if they feel that their vote won't matter.

    Conclusion

    With DPoS, anybody may contribute to a blockchain network without having to spend a lot of money on mining equipment. However, there are drawbacks to DPoS systems, including problems with decentralization.

    Although no system is flawless, blockchain technology is always developing and developing new, better systems. Visit our guide to learn more about Web 3.0 and how we're moving toward a decentralized future.