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Delegated Proof of Stake (DPoS)

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Table of contents
    1. 0.2. How DPoS Works
    2. 0.4. Why It Stands Out

Delegated Proof of Stake (DPoS) is a consensus mechanism that allows cryptocurrency holders to vote for a small group of trusted validators who are responsible for creating new blocks and securing the network. It’s designed to be faster and more energy-efficient than traditional Proof of Work (PoW) or even standard Proof of Stake (PoS) systems.

How DPoS Works

Instead of every user competing or staking directly to validate transactions, token holders in a DPoS system elect “delegates” (also called witnesses or block producers). These selected validators take turns confirming transactions and adding blocks to the blockchain. The more votes a delegate has, the higher their chance of being chosen.

Why It Stands Out

DPoS improves scalability and speed while still maintaining decentralization through voting. However, it can also lead to centralization if voting power gets concentrated. Popular blockchains like EOS, TRON, and Steem use DPoS to strike a balance between performance and security.