Delegated Proof of Stake

Definition of Delegated Proof of Stake

Delegated Proof of Stake (DPoS) is a consensus mechanism used in blockchain networks to validate and confirm transactions. In DPoS, token holders vote for a select group of delegates, who in turn, are responsible for maintaining the network’s security by validating and adding new blocks. This approach is designed to be more efficient, scalable, and environmentally friendly compared to traditional Proof of Work (PoW) methods.


The phonetic pronunciation of “Delegated Proof of Stake” is:DEE-luh-gay-tid PROOF ov STAYK

Key Takeaways

  1. Delegated Proof of Stake (DPoS) is a faster and more energy-efficient consensus algorithm than traditional Proof of Work (PoW) and Proof of Stake (PoS) systems, as it relies on a limited number of trusted validators, called delegates, to validate transactions and produce new blocks.
  2. DPoS promotes decentralization and democratic participation by allowing token holders to vote for their preferred delegates, who are then incentivized to act honestly and efficiently to maintain their position and receive rewards for block production.
  3. The Delegated Proof of Stake system can be vulnerable to collusion between delegates and centralization if a small group of powerful stakeholders manages to control a majority of the network. Mitigation strategies include limiting the power of individual delegates and implementing continuous voting to encourage competition and maintain a diverse set of delegates.

Importance of Delegated Proof of Stake

Delegated Proof of Stake (DPoS) is an important consensus mechanism in the blockchain technology realm, primarily due to its potential to greatly improve scalability, efficiency, and inclusiveness of blockchain networks.

Unlike traditional Proof of Work (PoW) or Proof of Stake (PoS) mechanisms, DPoS facilitates a more democratic process for electing trusted nodes, allowing holders of a network’s native token to vote for delegate nodes responsible for validating transactions and securing the network.

This voting-based system results in a highly decentralized network and promotes equal representation among the community.

Moreover, DPoS is energy-efficient and significantly faster, as it relies on a smaller subset of nodes to confirm transactions as compared to computationally-intensive PoW mining.

In summary, DPoS plays a crucial role in enhancing the overall sustainability and performance of blockchain networks, making it an appealing choice for many emerging blockchain ecosystems.


Delegated Proof of Stake (DPoS) is a consensus mechanism primarily aimed at optimizing decentralization and efficiency in digital ecosystems. It serves as the backbone for most modern blockchain networks where decision making needs to be streamlined while maintaining the security and stability of the platform.

The purpose of DPoS is to address the pitfalls of other consensus mechanisms like Proof of Work (PoW) and traditional Proof of Stake (PoS) by facilitating quicker, cost-effective transactions without compromising on the integrity and robustness of the network. In DPoS, the community members collectively elect a certain number of delegates or representatives, who are responsible for validating transactions and creating new blocks on the chain.

This selective voting process ensures that those with the best interest of the network are at the helm, mitigating security risks and fostering a democratic structure. The elected delegates are compensated for their efforts, incentivizing them to work towards increasing the overall value and utility of the platform.

In summary, Delegated Proof of Stake promotes scalability, enhances user participation, and balances power dynamics within blockchain networks, making it an ideal choice for contemporary decentralized applications and digital marketplaces.

Examples of Delegated Proof of Stake

EOS: EOS is a blockchain platform designed for the development of decentralized applications (dApps) with a focus on performance and scalability. It uses a Delegated Proof of Stake (DPoS) consensus mechanism, where token holders vote for block producers (called “witnesses”) to validate transactions and create new blocks. This approach reduces the number of nodes needed for the consensus process, enabling faster transaction processing and less energy consumption compared to traditional Proof of Work (PoW) systems.

TRON: TRON is a decentralized entertainment platform and content sharing ecosystem that aims to reward content creators through its native cryptocurrency, TRX. TRON utilizes a Delegated Proof of Stake consensus mechanism, in which 27 “Super Representatives” (SR) are elected by TRX token holders to validate transactions and create new blocks. Diverse rewards are distributed among SRs and their voters, promoting a decentralized and democratic ecosystem where users actively participate in securing and maintaining the network.

Lisk: Lisk is a blockchain application platform focused on JavaScript and TypeScript that allows developers to create and deploy their own dApps on custom sidechains. It uses a Delegated Proof of Stake voting system, which involves forging delegates that validate transactions and add new blocks to the blockchain. LSK token holders can vote for 101 active delegates, who are responsible for securing the network, processing transactions, and maintaining the system’s integrity. The DPoS mechanism ensures scalability and efficiency while ensuring network-wide security and consensus.

Delegated Proof of Stake (DPoS) FAQ

What is Delegated Proof of Stake (DPoS)?

Delegated Proof of Stake (DPoS) is a consensus algorithm used in blockchain technology. It is an alternative to the more traditional Proof of Work (PoW) and Proof of Stake (PoS) mechanisms. DPoS relies on a group of elected delegates to validate transactions, secure the network, and distribute rewards.

How does DPoS work?

In a DPoS system, coin holders elect a set number of delegates who are responsible for validating transactions and maintaining network security. These delegates are selected based on their reputation, reliability, and the amount of stake they hold. Once elected, the delegates create blocks and confirm transactions, earning rewards in the process which are shared with their voters.

What are the benefits of using DPoS?

DPoS offers several advantages compared to other consensus mechanisms. Some of the benefits include increased scalability, energy efficiency, and a reduced risk of centralization. Due to the small number of validating nodes, DPoS can process a higher number of transactions per second, and since no extensive mining is involved, it uses less energy than PoW systems.

What are the downsides of DPoS?

The main downside of DPoS is the potential for centralization, as a limited number of delegates hold significant power in the network. However, this risk can be mitigated by a wide distribution of tokens among the community, promoting active voter participation, and ensuring regular elections to keep delegates accountable.

Which cryptocurrencies use DPoS?

Several prominent cryptocurrencies implement Delegated Proof of Stake as their consensus mechanism. Some examples include EOS, Lisk, BitShares, Ark, and Steemit.

Related Technology Terms

  • Blockchain consensus algorithm
  • Witnesses or delegates
  • Stakeholder voting
  • Network security
  • Scalability and efficiency

Sources for More Information

  • Binance Academy –
  • Blockgeeks –
  • Investopedia –
  • CoinDesk –

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