You may have read about blockchain systems using Proof of Stake. This is the next level, and it is regarded as being both more effective and democratic.
Since Proof of Work (PoW) requires a lot of external resources, PoS and DPoS were created as substitutes. When compared to other systems, DPoS uses almost little resources and is made to be more environmentally friendly.
Daniel Larimer created the Delegated Proof of Stake (DPoS) consensus mechanism in 2014. Since then, the DPoS consensus method has been used by a number of projects, including Bitshares, Steem, and Lisk.
A DPoS-based blockchain operates by using a voting system in which participants contract with a third party to complete their work. A select group of delegates is chosen by these stakeholders to protect the network on their behalf. These delegates are in charge of reaching an agreement during block generation and validation.
If you’re considering running for office as a delegate or “witness,” keep in mind that your ability to vote depends on how many coins you each possess. The voting process varies from project to project, but generally, the delegates’ prizes are proportionately distributed among the stakeholders that choose them to be on the list.
By placing a strong emphasis on a delegate’s reputation, this voting technique keeps the DPoS algorithm secure. Voters and the system have the power to swiftly remove and replace an elected delegate or witness if they do not perform their duties effectively.
DPoS blockchains are more scalable and able to handle more transactions per second due to their lack of dependency on resources (TPS).