What is DPOS / Delegated Proof-of-Stake

The focus of this article is on knowing “What Is Delegated Proof-of-Stake (dPOS) “. Also, we will be studying meaning of consensus algorithm, proof of work, consensus algorithm, blockchain, etc.

This is a second choice in the absence of Proof-of-Stake and Proof-of-Work consensus algorithms.

Definition of Delegated Proof-of-Stake (dPOS)

What Is Delegated Proof-of-Stake (dPOS)? Due to the difficulties encountered with Proof-of-Work, there was need for development of Proof-of-Stake  mechanisms. This improvement was channeled towards the how intensive the resources of crypto mining are.

Mining is not an operation in a PoS system. Rather, new blocks are verified and it depends on total staked assets. After some time, users can randomly have access to the subsequent block because they staked some coins.

In each phase, users with very high number of stakes are easily granted this verification rights. PoS tried minimizing the fees associated with blockchain operations. On the process of doing such, they strike a very wicked attack that imposes difficulty. The attacker must have more than half of the total coins present.

In a Delegated Proof-of-Stake (DPoS) system, the process is almost the same. The only difference is that verification is rather assigned to a particular group. This group operates on the consensus mechanism by themselves.

DPoS representatives must be trustworthy, they must have good reputation before they can be chosen. The DPoS system encourages good behavior amongst representatives. If any character is displayed, they can be impeached at any time.

The PoW and PoS blockchains have less speed than that of DPoS blockchains  with a lower per-second transaction rate. However, the DPoS system has not been trusted fully to be safe because it is still developing.

Delegated Proof-of-Stake (DPoS) Narrated by Techopedia

In this system of operation, those who are part of the system, built an agreement. It is based on number of coins staked in the crypto system. According to professionals, represented PoS are fast and measurable and they enable free flow of digital transactions. However, the issue of inequality and security evolves with the story that the richest will have to decide what happens or not.  Others are afraid of seeing users with the highest stakes forming group that can be detrimental to the crypto market.

Elaboration of DPoS

What Is Delegated Proof-of-Stake (dPOS)? It is a process where the user’s voting power is his or her staked coins. After election, those selected have the potential to make decisions that affects the whole system. For instance, the elected candidates validate transactions or set the rules governing the blockchain network.

The DPoS, through the PoS removes energy consumption encountered while mining. In this article, we will look at the benefits of DPoS and its meaning as a consensus protocol.

Meaning of Consensus Algorithm

All the computer systems or nodes participates in verification of operations due to its decentralized nature. This is why blockchain networks function properly.

The blockchain network applies a method that can easily identify legal nodes since each node needs different verified transaction. This method is what we call blockchain consensus algorithm. There are separate algorithms used in each blockchain network.

Meaning of Delegated Proof-of-Stake (DPoS)

The DPoS and PoS operate similarly. The slight difference is that the former uses a voting setup to encourage users to protect their network with the collateral which they staked.

You can’t take part in the PoS and DPoS consensus mechanism without staking any coin. However, in block production only elected candidates and voters can validate transactions.

They are often known as witnesses or block producers. You can select a candidate by simply staking all your portfolio in a centralized pool. Then you channel your stakes to the candidate you are supporting. All these are applicable in DPoS system. Just note that the channeling doesn’t mean that your portfolios are removed.

It is necessary that candidates chosen can make decisions on approval and rejection of transactions.

The Importance of Consensus Mechanisms in Blockchain

Why does a blockchain technology require consensus? Many will ask. Let’s find out. Blockchain is a distributed ledger that records all of the possible transactions. An approved important part of all the blockchain technologies is seen as decentralization. This means that these transactions are distributed across several entities rather than an individual.

There’s also an extension to validate transactions with cryptographic hash functions. They give unique output for each input received. There is also an estimation that the higher the nodes, they less they are prone to attack. Consensus mechanism enables the effectiveness of the blockchain technology.

In reference to Bitcoin, it uses the proof of work consensus protocol, which delivers clear results. It consumes time and energy and for that it has a slower transaction rate than that of networking protocols used regularly.

Despite the processes used by various cryptocurrencies, it is important to establish an agreement of each transaction in a particular server. A consensus mechanism helps to facilitate the agreement of each transaction. This technology also prevents users from double-spending. Well what is double-spending? It is the act of spending a coin on two different occasions.

Operations of DPoS

There are various features that makes the operations of the DPoS very effective. Currently, the PoW and PoS are used by more Blockchain a but the DPoS is solves most issues that affect the PoS and PoW.

A special voting system is applied here, those selected have the potentials. Representatives are mostly chosen because of their high self-esteem. The eligibility for voting is the possession of at least one coin. In order to achieve consensus, you are advised to grasp the knowledge of the operations of a DPoS blockchain.

Voting Methods in a DPoS

All the necessary voting methods are contained in a DPoS. For verification purposes, different entities are selected by interested users through voting. Each DPoS network has its own voting system, they are given permission provide a delegate or vote directly.

The entity chosen is called a witness who are able to create blocks by legalizing transactions.

The chosen witness is not rewarded if there is no verification within a specific time. In most cases, there are missing blocks and this occurs when two different witnesses verifies all the transactions.

Witnesses in Blockchain

The work of witnesses is to protect and legalize the blockchain. A user needs large amount of votes rather than crypto to be a witness. Transactions are recorded in a distributed ledger after validation. Although, some transactions are kept outside block but their information remains the same. The total number of witnesses in a single server can be between 21 and 101.

Keep in mind that the voting process is continual, which means that witnesses can be voted out if voters believe someone else is more trustworthy. If a large number of people are applying for the role of witness, there may be an ample amount of competition. In this case, reputation may be key to determining which people are voted in and which ones aren’t.

Transaction Time for DPoS

This refers to the amount of time it takes to process its transaction. This time is to be short because the made DPoS to be more effective than the PoS and PoW. However, time for transactions varies with each DPoS network. The TRON runs on a DPoS network. We assume its transaction time to be 1 minute.

With TRON, in order for a transaction to go through, it will require 20 confirmations . Two confirmations occur when the place one block chronologically after another. TRON requires 20 separate confirmations to occur within one minute. In contrast, the estimated transaction speed for USD Coin, which uses a PoS consensus mechanism, is five minutes.

Representatives of a DPoS System

They are users that governs the affairs of its blockchain. Other users elect them. A representative can manipulate the size of a block. Also, he or she can manipulate the number of validators that will receive payment. After the bring up this manipulations, the users within the blockchain choose to follow suit or not.

Validators of Blocks in Blockchain

The only work a user does as a validator is to run the validator and verify its network. Conversely, a witness cannot be a validator due to lack of financial motivation. Validators of block validators are entities that makes sure that the created blocks applies by the consensus rules.

Distinction of PoS and DPoS

The stake delegated proof is more efficient and democratic in nature than the PoS.

In the PoS system, the build blocks according to time spent and the exact amount of stakes made by users in the blockchain network. The difference between DPoS and the PoS is that the former allows the election of representatives and witnesses. It also create blocks at the same time.

Factors that hinders DPoS

The DPoS have two limiting factors although they protect users from what we call double-spending . One of the limiting factors is the possibility of specific number of users to act as witnesses (centralized). The second one is the possibility of users with small stakes not participating in the voting process.

Blockchains that operates on the basis of a DPoS Consensus

The major examples of blockchain networks that use DPoS consensus are EOS, TRON and Cosmos.

We have the EOS Network

Here, the call representatives, block producers. The elections happen every 2 minutes, 6 seconds. Users have the ability to vote up to 30 candidates in each election after staking their EOS coins. Afterwards, the choose the top 21 candidates. Each block producer should have at least 8GB RAM as its hardware.

We have the TRON Network

This network on its part calls their representatives ‘super’. A user has the ability to vote for 5 SR candidates in each election after staking their Trons. The elections occur once in a day. Afterwards, the elect the top 27 candidates as delegates.

We have the Cosmos Network

The Cosmos network is planning on decentralizing their blockchain the more. This occurs by increasing their verifiers to three times its initial number. The initial number was actually 100. Also, the know the representatives as verifiers.


The most efficient consensus algorithms currently is the DPoS. It uses more energy and fewer time than the PoS respectively. All the blockchain network have their main focus on the consensus algorithms. Verification of transactions does not take a lot of time and energy once you use the appropriate algorithm. DPoS provides workable solutions as the rate of transactions increases. Less energy consumption and security of networks are about to be features that all blockchain protocols can’t do away with.

Description about Delegated Proof of Stake

A lot of people prefer the Delegated Proof of Stake (DPoS) consensus algorithm to that of a Proof of Stake. The preference is in terms of democracy and efficiency.

In the absence of the PoW system, both PoS and DPoS can serve as substitutes. This is because since a PoW supports external tools for design. In contrast, Proof Of Stake and Decentralized Proof of Stake supports internal tools for design. But they are more sustainable and nice to its ecosystem. However, one must have the basic knowledge of the PoW and PoSPoS. It will enable them understand the concept of DPoS. The presence of huge operations done with the computer in the PoW is not just for fancy. It helps to keep a static, decentralized and a clear distributed ledger.

Definition of Proof-of-Work (PoW)

It is the first consensus algorithm to operate in blockchain. Although, a lot of crypto spaces are pioneers. The purpose of Bitcoin, is to serve as a substitute to the centralized traditional global monetary system. PoW introduced a consensus mechanism which was workable. It made the transactions done by a central entity unimportant. It reduced transaction fees and eliminated middlemen through a decentralized payment method. The design PoW as a very important part of Bitcoin process. It generates and maintains new blocks through mining.

A network of mining channels maintain the Proof of Work system . This together with other channels. They use specialized hardware known as ASICs to solve complex problems related to crypto. The mine each new block every 10 minutes. This is on an average assumption. One cannot add a new block without solving the issues of the previous block. Once the complete the Proof of Work , the operation becomes possible. They reward users with newly created coins and all transaction fees afterwards. Let’s not be too confident, the task requires a lot of energy and failed attempts. Therefore it is very difficult and the ASIC hardware is also costly.  

People do enquire the limitations to the use of a Proof Of Work. Their focus is the amount of transactions per second. However, people regard the Proof Of Work blockchains as being safe and dependable. It is still the setting that tolerates faults.

Definition of Proof-of-Stake (PoS)

The aim of creating Proof of Stake systems was to help improve some skills and the and solve other problems. We encounter these problems on a blockchain that operates on Proof of Work. It has a special case in tackling what it costs to mine in a Proof of Work system. Basically, the protect a Proof of Stake blockchain. It is in a way that you can’t avoid the consequences. The prohibit mining in this system. The higher the number of your staked portfolio, the more close you are to getting a role to mint. The most famous second choice or Proof of work is the Proof Of Stake consensus algorithm.

The Proof of Stake and the Proof of Work systems depends on an internal and external investments respectively.

Additionally, unsuccessful attacks made would result in huge financial losses. PoS is still in its starting stages although there has been good testimonies about them. They need to test them on a larger firm.

Explanation of Delegated Proof of Stake (DPoS)

Daniel Larimer is the developer of the consensus algorithm. Which is the delegated Proof of Stake (DPoS). We may want to the crypto projects that operates with this type of algorithm. I have arranged them for you all, namely Bitshares, Steem, Ark, and Lisk.

Here, stakeholders assign their functions to another individual because every vote counts. This creates chance for selection of few representatives that will help them guide the network. They can call the candidates, witnesses too. When the produce new legal blocks, they can collectively judge. The coins users hold, is independent on the voting power. Generally, each candidate offers a personal proposal. Although the method of voting changes with change in projects. Traditionally, candidates share their rewards with those that elected them into office.

Therefore, the reputation of candidates determines the voting system in a DPoS field. There is an immediate change to any misconduct seen in the elected delegate.

DPoS blockchains are overshadows the PoW and PoS in carrying out work effectively. The measure it with a scale.

Comparison of DPoS and PoS

The DPoS elects block producers through a democratic system of voting. However, in terms of holding stakes, the PoS and DPoS are just alike. The advice the candidates to be honest and reliable otherwise, they loose the election. Voters control the DPoS operations. Their transactions have higher speed and than the PoS transactions.

Comparison of DPoS and PoW

PoW is a better choice than DPoS in terms of transferring money. Both of them work in separate ways but PoS is faster and often used more than PoW. Only block producers carry out staking in DPoS. Researchers discovered the real production to initially contradict the system of PoW that is very competitive. Each delegate is a particular time to produce their respective blocks. PoS tries to resolve the issues of PoW while DPoS attempts to regulate the processes involved in block production. This enabled the DPoS systems to process bigger transactions in blockchain within a short period of time. Some people want the DPoS to operate as a Proof of Authority system.

However, the DPoS system operates faster than the PoS, the real production is also differs. DPoS is completely different from PoW and PoS. It involved stakeholders to vote in order to select and encourage honest and effective representatives.

Leave a Comment