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
Stablecoin
Cryptocurrency with a price peg to fiat currencies or commodity.
Immutable
A property characterized by inability to be change and stays unchanged over time.
Hash
A hash function is an output code (unique and alphanumeric) that we obtain from an input string,
Block Explorer
Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.