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
Central Ledger
Central data repository of a company or bank
Sharding
A form of database partitioning which breaks up data into smaller segments.
Order Book
An electronic list of all buy and sell orders in an exchange
Gas Price
A term refers to the amount of price user is willing to pay for a transaction on Ethereum blockchain.
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