Scalability is one of the biggest issues that is faced by public Blockchains. To overcome this problem, many Blockchains are using a consensus mechanism that is known as DPoS. To enhance the speed of transactions and block creation DPoS is playing an essential role. However, most of the people are not aware of the DPoS system. So, let’s understand what is DPoS and its benefits.
What is DPoS?
DPoS is known as Delegated Proof of Stake, which was discovered by Daniel Larimar back in 2015. It is the most effective, swift, decentralized and flexible consensus model that is accessible in the Blockchain space. Delegated Proof of Stake has an improvement of the PoS (Proof-of-Stake) model and alternative consensus mechanism.
The consensus mechanism leverages the power of shareholder authorization via conducting an election to sort out the problem in the Blockchain through a fair and democratic manner.
Delegated Proof of Stake has divided the consensus model into the two fundamental parts scheduling production and electing a group of individual block producers.
Delegated Proof of Stake systems users have right to choose the delegates and vote for them. However, the only reliable party is responsible for handle the network. The oversee delegates, the performance, and governance of the whole Blockchain protocol but doesn’t have any involvement in block production and transaction validation.
Delegates responsibility revolves around:
- Broadcasting, Signing the blocks and validating the transactions.
- To make sure all the signed nodes are always up and running.
- Gathering all the transactions across the network into blocks.
- If any problem has faced regarding the consensus then DPoS help to fix the problem in a democratic way.
Top tier witnesses have a limit at the specific number and these top-tier witnesses have given the responsibility for creating blocks and validate the transactions.
They do have the rights to stop the particular transactions from getting in the upcoming block. Top tier witnesses are equivalent to miners in a PoW system, so they can modify the information of any transaction.
As election id the mandate part in the top tier, so they are always at the risk of being replaced. The completion increases to be in the list of witnesses when Blockchain grows. Moreover, users are also empowered to eradicate a witness from the top tier.
In DPoS systems, users have given the right to vote and choose a suitable witness. This selection takes place based whosoever collect the maximum number of votes. In the DPoS systems, users have the power to pass on their votes to other users to vote the desired witness on their behalf.
These Votes are evaluated according to their size of each voter’s stake. To get in the top tier of witnesses, the user doesn’t need to have a big strake.
Benefits of DPoS:
The execution of Delegated Proof of Stake is in the initial stage, but there are many DPoS like Steem, EOS, Lisk and BitShares has gained meaningful traction in the blockchain space. The early execution of Delegated Proof of Stake has appeared with many benefits of the protocol. Let’s have a look at them:
With Primary implementations of Delegated Proof of Stake (DPoS) , it has been exposed that addresses several of scalability limitations of traditional is PoS Models and PoW models.
Prevent Nothing-at-Stake issue:
One of the biggest and effective benefits of Delegated Proof of Stake that Nothing-at-Stake issue in PoS networks that it can be easily handled the network of a small group of validators. Using the set quantity of token validators in dynamic election model and DPoS can avoid these issue from taking place in the first place.
Control of token Owners:
It has been decided that the election of block producers assures that network has the power to handle token owners. It is the major and key principle of decentralization.
The separation of DPoS, the election of block producers from the block production itself has provided an opportunity for more innovative models to resolve in isolation.
Overall, DPoS is an essential invention in the evolution of consensus mechanisms. It highly beneficial for boosting the speed and scalability issue of the Blockchain.