The developer of DPOS (Delegated Proof of Stake Algorithm) is an American software programmer and cryptocurrency entrepreneur called Daniel Larimer.
Some issues like scalability which is faced by public blockchains many times. The blockchains of Lisk (LSK), EOS (EOS), Steem (STEEM), BitShares (BTS), and Ark (ARK) have already adopted a consensus protocol called Delegated Proof of Stake (DPoS) with the objective to tackle this issue. Transactions can’t just be fast, but the creation of blocks can also be fast using DPoS. A miner can reach a consensus efficiently than ever in DPoS.
Miners have to select ‘witnesses’ by giving their votes. They have to vote to those miners for witnesses on whom they can trust for the validation of transactions. Witnesses with the most votes belong to the top tier of witnesses. They will earn the right for the validation of transactions. Miners can give their voting power to other miners on whom they can trust for the selection of witnesses on their behalf.
A miner doesn’t require to have a large amount of a cryptocurrency in order to enter into the top tier of witnesses. Miners with a small amount of a cryptocurrency can enter into the top tier of witnesses with votes from those miners who have a large amount of the cryptocurrency.
In the top tier, the number of witnesses will be capped at a certain number. The validation of transactions and the creation of blocks will depend upon these witnesses. These witnesses will be rewarded in return.
Specific transactions can be prevented from including into an upcoming block by the witnesses of the top tier. The details of any transaction can’t be changed by them.
The voting process of Delegated Proof-of-Stake (DPoS) is actually a continuous process. Therefore, the selected witnesses can be replaced by those witnesses who will collect more votes and will be considered as more trusted ones. Becoming or remaining a witness in the top tier is difficult in DPoS. A witness on whom the trust is lost can also be removed from the top tier by voting.
In DPoS, miners can vote for a group of ‘delegates’. The group of delegates is defined as a trusted party who maintains a DPoS network. The governance and performance of the entire blockchain protocol are supervised by the trusted party. The role in the validation of transactions and the creation of blocks is not played by them. The change in the size of a block can be proposed by them. The change in the amount which is paid to a witness for the validation of a block can also be proposed. If the trusted party proposes any of these changes, the miners of a DPoS network will vote on whether to adopt or not.
Delegated Proof-of-Stake (DPoS) DPoS works faster than PoW and PoS. The security and integrity of blockchains can be improved with the incentives and structures of DPoS. A miner can perform his role in a truthful way using the incentive he has. If a miner has a normal computer, then also the miner will be able to become a user, witness, or delegate. Therefore, specialized equipment is not required in DPoS. There is no requirement of a huge amount of energy since DPoS is energy efficient.
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