Blockchain Academy


DPoS is a type of PoS that it selects the participating nodes by voting to create blocks, whereas in PoS, every node with a stake can verify the blocks and get the rewards. It is delegating the authority of block creation to few people by network participants, so it is called 'Delegated Proof-of-Stake'. If PoS is a direct democracy, DPoS is indirect democracy. For the election, the stakes of the members are summed up to select top 'N' members, then these selected block producers(BP) N start creating blocks in order.

The good thing of having relatively small selected block creation nodes is having a low fork rate and way faster approval of transactions than traditional PoW, PoS. However, the bad thing with this small verifying group is that the decentralization is not 100% guaranteed. Because when the dominating nodes are over 2/3 the system, they can modify the block data on purpose. To prevent this, the live voting is held to elect the better BP by people with many stakes and they are believed to be acting for the benefits of the network.

EOS is the representative blockchain platform which uses DPoS as a consensus algorithm. In EOS, each node can use their staking coins as resources in EOS network and as the vote to elect 21 of BP. Whenever every BP creates six blocks each, the election is held on air that top 20 out of 100 candidates are being elected by the stakes of voters, and one is elected randomly; total 21 of BP are being selected this way. One of BP verifies the transactions and puts those into blocks in every 0.5 second. These blocks are confirmed by the approval of 15 others.