Delegated Proof-of-Stake (dPOS)

Understanding Delegated Proof-of-Stake (dPOS)

Delegated Proof-of-Stake (dPOS) is an alternative mechanism to Proof-of-Work (PoW) that addresses the resource-intensive nature of crypto mining. Unlike PoW, dPOS does not involve mining. Instead, it validates new blocks on the blockchain based on the number of coins staked.

When participating in a dPOS system, users stake a certain number of coins. At specific intervals, users with stakes are randomly assigned validation rights for the next new block. The more coins staked, the higher the chances of being selected for validation.

dPOS reduces computational costs associated with running a blockchain and makes it harder for malicious actors to carry out attacks, as they would need to possess at least 51% of the total coins on the chain.

In a dPOS system, stakeholders delegate validation work to elected delegates chosen based on reputation and trustworthiness. dPOS incentivizes good behavior among delegates, as the community can vote them out and replace them if needed.

Compared to PoW and PoS systems, dPOS blockchains are generally faster with a higher transaction rate. However, it is important to note that dPOS is still in its early stages and is not considered secure enough for money-transacting blockchains.