Delegated Proof-of-Stake (dPOS)
By CoinGecko | Updated on Mar 03, 2020
A consensus mechanism where selected members of a network are voted as delegates to validate transactions and produce blocks on a blockchain.
Members of the network vote for delegates through their holdings. Usually the highest voted delegates have the most power and tend to produce the most blocks and therefore rewards. Some protocols have built in mechanisms to balance it out.
Overall, the delegated proof-of-stake system was built to counter the energy use and efficiency issues of the proof-of-work blockchain, at the cost of some degree of centralization.
Related Terms
Interoperability
Interoperability refers to the property of product/systems that are able to work with products/systems that are different without any restrictions.
Block Height
A number that is used to indicated the position of a particular block within a blockchain
Market Order / Market Buy / Market Sell
A market order is a buy or sell order of stocks or cryptocurrency at the best price available in the current market as soon as possible.
Mempool
It is the abbreviation of Memory Pool. Set of unconfirmed transactions in a blockchain
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