Delegated Proof-of-Stake (DPoS)
Delegated Proof-of-Stake is an alternative to the consensus mechanisms in the blockchain system. In this mechanism, users still stake their coins but compared to the PoS, it is considered as more democratic. It is more democratic because, in the PoS, the individual with more coins has a better chance to validate the new block. However, in the DPoS, stakeholders can vote for their delegates. After consensus, these delegates validate the new blocks.
Pros and Cons of the Delegated Proof-of-Stake
Let’s have a look at the pros and cons of the delegated Proof-of-Stake:
Pros:
- DPoS has a high per-second transaction rate, making it a faster and more efficient alternative to the other blockchain mechanisms.
- Compared to the PoW, DPoS uses much fewer resources and is eco-friendly.
- Compared to the PoS, the voters have the power to choose their delegate, which makes candidates more honest and motivated in order to get elected.
Cons:
- It is still in a developing phase.
- PoW is still the standard mechanism for fault-tolerance solutions because it is considered more secure than the DPoS.
Curious about other consensus mechanisms used in the cryptocurrency world? Learn more about Proof-of-Work now.
What is Consensus Mechanism in Cryptocurrency World?
Currently, the most popular consensus system used for blockchains is the Proof of Work (PoW). PoW is the first consensus system that is implemented as a component in the Bitcoin protocol to generate new blocks through the mining process. Although it is a secure mechanism to validate new blocks, PoW requires too much computational power and is not eco-friendly.
Therefore, an alternative method developed for creating new blocks in the blockchain systems is the Proof of Stake (PoS) mechanism. In the PoS, the new block is created by not the mining method; instead, it is based on the number of staked coins. A larger amount means a larger chance of getting the validation rights for the new block. This method is also secure since if there is an attack, the attacker needs at least 51% of the total amount of the blockchain.
