Delegated Proof of Stake: Difference between revisions
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A blockchain engineer named Daniel Larimer realized that Bitcoin mining was too wasteful of energy. He also recognized that Bitcoin mining would become centralized in the future, with giant mining pools being in control of the Bitcoin network. Additionally, he wanted to build a system that was capable of transaction speeds like 100,000 per second. Bitcoin’s system was too slow due to the way it was designed and the system it used: Proof of Work. He decided to invent and build a new system that used very little energy, was lightning fast and also very secure. Dan named this new system, Delegated Proof of Stake, or DPOS." | A blockchain engineer named Daniel Larimer realized that Bitcoin mining was too wasteful of energy. He also recognized that Bitcoin mining would become centralized in the future, with giant mining pools being in control of the Bitcoin network. Additionally, he wanted to build a system that was capable of transaction speeds like 100,000 per second. Bitcoin’s system was too slow due to the way it was designed and the system it used: Proof of Work. He decided to invent and build a new system that used very little energy, was lightning fast and also very secure. Dan named this new system, Delegated Proof of Stake, or DPOS." | ||
(https://hackernoon.com/explain-delegated-proof-of-stake-like-im-5-888b2a74897d) | |||
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This system works because it is able to flush out bad actors and at the same time recognize new valuable members. The system is dependent upon active voters in the community, so educating new members about how the system works is essential to the well-being of the system." | This system works because it is able to flush out bad actors and at the same time recognize new valuable members. The system is dependent upon active voters in the community, so educating new members about how the system works is essential to the well-being of the system." | ||
(https://hackernoon.com/explain-delegated-proof-of-stake-like-im-5-888b2a74897d) | |||
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Current cryptocurrency projects that use Delegated Proof of Stake: | Current cryptocurrency projects that use Delegated Proof of Stake: | ||
BitShares: https://bitshares.org/ | BitShares: https://bitshares.org/ | ||
Revision as of 07:41, 11 January 2018
Description
Leah Stella Stephens:
"I like to think of Delegated Proof of Stake as technological democracy. Just think about how many asshole bosses there are out in the world. Have you ever wanted a system in which you, the employee, get to fire your own incompetent boss? Well, there is a new system that is very close to the reality of employees getting to fire their own managers. It’s called Delegated Proof of Stake.
...
A blockchain engineer named Daniel Larimer realized that Bitcoin mining was too wasteful of energy. He also recognized that Bitcoin mining would become centralized in the future, with giant mining pools being in control of the Bitcoin network. Additionally, he wanted to build a system that was capable of transaction speeds like 100,000 per second. Bitcoin’s system was too slow due to the way it was designed and the system it used: Proof of Work. He decided to invent and build a new system that used very little energy, was lightning fast and also very secure. Dan named this new system, Delegated Proof of Stake, or DPOS."
(https://hackernoon.com/explain-delegated-proof-of-stake-like-im-5-888b2a74897d)
Characteristics
(examples from steem.it)
"What are the ingredients for DPOS? A cryptocurrency, a blockchain, community of people, computers and rules.
- People in a particular cryptocurrency community vote for Witnesses to secure their computer network.
Only the top 100 Witnesses are paid for their service. The top 20 earn a regular salary. Because many want to become a Witness, there are hundreds of backup Witnesses.
People’s vote strength is determined by how many tokens they hold. This means that people who have more tokens will influence the network more than people who have very few tokens.
As the community grows, it gets harder and harder to remain a paid Witness due to increased competition.
If a Witness starts acting like an asshole, or stops doing a quality job securing the network, people in the community can remove their votes, essentially firing the bad actor. Voting is always ongoing.
This system works because it is able to flush out bad actors and at the same time recognize new valuable members. The system is dependent upon active voters in the community, so educating new members about how the system works is essential to the well-being of the system." (https://hackernoon.com/explain-delegated-proof-of-stake-like-im-5-888b2a74897d)
Examples
Current cryptocurrency projects that use Delegated Proof of Stake:
BitShares: https://bitshares.org/
Steem: https://steem.io/
EOS: https://eos.io/
Lisk: https://lisk.io/
Ark: https://ark.io/
More information
- explanatatory video: https://youtu.be/hAxDjAmRKkU
Further reading and sources:
Dan Larimer invented DPOS in 2014: https://bitcointalk.org/index.php?topic=558316.0
DPOS vs. POW by Dan Larimer: http://bytemaster.github.io/bitshares/2015/01/04/Delegated-Proof-of-Stake-vs-Proof-of-Work/
DPOS updated white paper by Dan Larimer: https://steemit.com/dpos/@dantheman/dpos-consensus-algorithm-this-missing-white-paper
Overview of different consensus algorithms: https://blog.wavesplatform.com/review-of-blockchain-consensus-mechanisms-f575afae38f2