What is DPoS

Delegated Proof of Stake is a blockchain consensus designed to be more efficient and achieve high scalability compared to the traditional Proof of Stake system. It works on the principle of delegation, through which the token holders elect a small group of trusted individuals to whom they delegate trust in transaction validation and maintenance of the blockchain.

How DPoS Works:

In DPoS, the right to vote belongs to token holders; thus, they vote on which delegate is to be in charge of the validity of a transaction over the blockchain and addition of blocks. Every user will directly be given voting power according to how many tokens each one holds; this basically means that participants owning the highest number of tokens will have the big say. In this, elections run continuously, so that at any instance, the current bad performer may be replaced by the token holders.

They, afterwards, in rotation validate blocks after the election to ensure the network remains decentralized and its transactions are of high throughput. In the case of DPoS, block production happens quicker and with higher transaction throughput, since not the whole network, but just a few delegates take part in consensus. Besides, it maximizes performance at lower power consumption compared to PoW systems.

Advantages and Risks:

With this comes more efficiency and scaling to DPoS, but it does introduce some centralization if the same set of delegates is being consistently re-elected, because that would then give them more powers than others to govern the network. So, community involvement is needed to keep the concept decentralized.

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~ Nesaty