What is DPoS?

Delegated Proof-of-Stake (DPoS) is a consensus mechanism that is used to validate transactions and produce new blocks in a blockchain network. It is a popular alternative to Proof-of-Work (PoW), which is used in Bitcoin and other similar cryptocurrencies. DPoS was introduced in 2014 by Daniel Larimer, the founder of Bitshares, and has since been implemented in several other blockchain networks, including EOS, Steemit, and Lisk.

How does DPoS work?

In a DPoS system, token holders in the network elect a set of nodes, known as delegates or witnesses, to validate transactions and produce new blocks. These delegates are responsible for maintaining the network and ensuring that transactions are processed in a timely and secure manner.

To become a delegate, a node must first register its candidacy with the network. The registered candidates then campaign for the support of token holders by showcasing their technical expertise and their plans to improve the network. Token holders can then vote for their preferred candidates, and the top vote-getters become the delegates.

Once elected, the delegates are responsible for producing new blocks on the network. They do this by participating in a round-robin system, where each delegate takes turns producing blocks. This ensures that every delegate has an equal opportunity to contribute to the network and reduces the likelihood of centralization.

Advantages of DPoS

  1. Energy Efficiency: One of the most significant advantages of DPoS is its energy efficiency. Unlike PoW, which requires nodes to perform complex calculations to validate transactions, DPoS relies on a small group of delegates to perform this task. This reduces the computational requirements of the network, making it more energy-efficient.

  2. Speed: DPoS is also faster than PoW. Since only a small group of delegates are responsible for producing blocks, transactions can be validated and processed more quickly.

  3. Decentralization: DPoS is designed to be more decentralized than PoW. By allowing token holders to elect delegates, DPoS ensures that power is distributed among a large group of stakeholders, rather than concentrated in the hands of a few powerful mining pools.

  4. Scalability: DPoS is also more scalable than PoW. Since only a small group of delegates are responsible for producing blocks, the network can handle a higher transaction volume without compromising on speed or security.

Limitations of DPoS

  1. Centralization: While DPoS is designed to be more decentralized than PoW, there is still a risk of centralization. If a small group of token holders control a significant percentage of the network's tokens, they can effectively control the election process and determine who becomes a delegate.

  2. Sybil Attacks: DPoS is vulnerable to Sybil attacks, where a single entity creates multiple identities to gain a larger voting share. This can be mitigated by requiring identity verification for voters, but this can introduce other issues such as privacy concerns.

  3. Voter Apathy: In some cases, token holders may not participate in the election process, leading to a small group of voters electing delegates on behalf of the entire network. This can lead to centralization and reduce the effectiveness of DPoS.


DPoS is a consensus mechanism that offers several advantages over PoW, including energy efficiency, speed, decentralization, and scalability. However, it is not without its limitations, including the risk of centralization, Sybil attacks, and voter apathy. Despite these limitations, DPoS has been successfully implemented in several blockchain networks and is likely to continue to be a popular alternative to PoW.