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What is Delegated Proof of Stake (DPoS)?

Delegated Proof of Stake also called “DPoS” is a unique alternative consensus mechanism that gives more power to the original stakeholders. 

DPoS was introduced to solve the scalability as well as efficiency problems related to PoW and PoS. 

With the use of a voting and delegation process, as we stated, DPoS is trying to bring out democracy into decentralized systems while clearing them with high performance & security.

How Does Delegated Proof of Stake Work?

In the Delegated Proof-of-Stake (DPoS) system, a few block producers are voted in by those who hold tokens as stakeholders. Validators are responsible for authorizing transactions and managing the blockchain. 

Every token owner has voting power equal to the amount of tokens in their possession, so this encourages active participation and guarantees that delegates are trusted representatives of the network

Voting and Delegation

  1. Stakeholders Vote: Token holders stake tokens to delegate. Token holders vote on community proposals, and the more tokens they have,,the greater weight in voting.
  2. Delegate Selection: Blocks creation and transaction validation are done by the people who have given maximum votes to elected as a delegate. On most blockchains this engages a limited number of delegates, which are 21-101 (depending on the blockchain in question).
  3. Block Production: Elected delegates will take turns producing blocks in a red robin fashion. This way the blockchain runs smoothly and blocks are produced at regular intervals.

Benefits of Delegated Proof of

For this reason, among others, DPoS has emerged as a popular choice for blockchain projects over traditional consensus mechanisms.

  1. Scalability: A DPoS system is able to support a larger number of transactions per second (TPS) as compared to PoW and PoS systems. Such requirements were essential for applications that needed super fast and reliable transaction processing.
  2. Efficiency: Since the number of nodes needed to reach consensus is very small, DPoS utilizes far less computational resources which allows for greater scalability. Which in turn results in reduced power consumption and operational expenses.
  3. Decentralization: Through only requiring a handful of delegates, DPoS guarantees these few are consistent with the broader stakeholder populace due to the voting process. The democratic mechanism ensures both decentralization and stakes efficiency.
  4. Security: The voting mechanism and the potential for frequent delegate rotation reduce the risk of centralization and malicious attacks. Delegates are incentivized to act honestly, as the community can revoke their position if they fail to perform their duties.

Examples of DPoS in Action

Several prominent blockchain projects have successfully implemented DPoS, demonstrating its effectiveness and versatility.

  1. EOS: EOS is probably the most prominent chain that uses DPoS. It is intended to be a new decentralized development and deployment platform for large-scale industrial applications of decentralized applications (dApps).EOS is one of the fastest blockchain platforms because of its DPoS system, which can process thousands of transactions per second.
  2. Tron (TRX): Tron aims to create a decentralized internet and uses DPoS. The Tron network has 27 Super Representatives (SRs) to produce blocks and validate transactions. Election by voting of these SRs continuously takes place through the Tron community.
  3. Lisk (LSK): Lisk was created to empower developers in building decentralized applications with JavaScript. DPoS is a consensus mechanism, 101 elected delegate maintain the network and produce blocks in Lisk ecosystem.

Challenges and Criticisms of DPoS

While DPoS offers numerous benefits, there are also a number of drawbacks and criticisms.

  1. Centralization Risk: If there is a initial small group of stakeholders they may end up eventually accumulating enough influence to control the majority of network. This will result in a centralization of power over the network.
  2. Voter Apathy: In some DPOS systems, very low amounts of stakeholders are voting. This lack of voter (anglers/endorsers) engagement could lead to less qualified delegates winning their respective elections.
  3. Collusion: The network's Elected Delegates may attempt to collude with each other to manipulate the system for their own gain. This risk is mitigated by the transparency of voting and the rotation of delegates.


Delegated Proof of Stake (DPoS) is a massive improvement over consensus mechanisms in blockchain technology, and PayPal should pay attention because DPoS is truly efficient at scale as well. 

DPoS allows the network to remain decentralized by putting a system where everyone is empowered to vote for delegates and constitute on the chain. Challenges aside, DPoS remains a robust option for many blockchain projects and has helped fuel innovation in the industry.

The DPoS consensus seems to have saved the cryptocurrency world from a great deal of energy wastage, more than an actual application bug. 

If this was sparked by evolution, then Delegated Proof-of-Stake may possibly go on to shape not just the blockchain nucleus but also archetypally alter other implementations. 

The power to balance decentralization with performance attracts developers and stakeholders, giving rise to the new wave of mega smart contract platforms.

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