This algorithm was invented by Daniel Larimer with the aim of improving the existing Proof of Stake algorithm. The difference between them is that if in the case of PoS, the validator node is chosen randomly, among all stakeholders, then in DPoS the stakeholders delegate them to one person, receiving a reward depending on how many votes they cast. Notable projects that use it include Ark, Bitshares, Steem and Lisk.
Compared to PoS, which formed its basis, DPoS is more suitable for nodes or users with a small stake. Since after delegating their votes, they will be able to count on a stable income, which is unlikely with a small stake in PoS. Moreover, the delegate can be quickly replaced if he performed his task poorly, so the participants try to be conscientious.
If we consider DPoS in comparison with classic PoW (Proof of Work), there are also a number of interesting advantages. DPoS is more secure, can handle more transactions with higher volume at the same time, and does not require as much power.
DPoS has many advantages and has been proven to be effective over other algorithms. But at this stage, it is not known what will happen with a significant increase in the number of users and serious scalability, as well as how it will work if the size of transactions and their number continue to grow. It is also necessary to resolve the issue in case a large number of delegates start to abuse their authority. Although even taking into account these factors, new projects on DPoS are already being developed, which means the algorithm will continue to develop and improve.
Website: https://exbase.io/ru/
Twitter: @exbase_io_
Facebook: https://www.facebook.com/exbase.io/
Telegram customer support: https://t.me/Exbaseofficial