Clear DefinitionsDelegated Proof-of-Stake
1 min read
Pronunciation
[del-uh-gey-tid proof uhv steyk]
Analogy
Imagine a representative democracy. Instead of every citizen directly voting on every new law (validating every block), citizens (token holders) elect a small group of parliament members (delegates) to make laws on their behalf. These elected members are responsible for the day-to-day operations and can be voted out if they perform poorly.
Definition
A variation of Proof-of-Stake where coin holders vote to elect a limited number of delegates (also known as witnesses or block producers) who are responsible for validating transactions and creating blocks. Token holders 'stake' their tokens to vote for these delegates.
Key Points Intro
DPoS aims to improve scalability and efficiency by reducing the number of active validators through a voting system.
Key Points
Token holders use their stake to vote for a fixed number of delegates.
These elected delegates are responsible for producing blocks and maintaining network consensus.
Delegates often share a portion of their rewards with those who voted for them.
Can achieve faster transaction times and higher throughput due to the limited number of block producers.
Reputation and performance are crucial for delegates to remain elected.
Example
Technical Deep Dive
In DPoS systems, the number of active block producers is typically small (e.g., 21-100). Voting is often continuous, meaning delegates can be replaced if they fail to perform their duties or lose community support. The system relies on the incentive for token holders to vote for competent and trustworthy delegates, and for delegates to act honestly to maintain their positions and rewards. This can lead to more centralized block production compared to traditional PoS, but potentially faster consensus.
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