How Does ‘Delegated Proof-of-Stake’ (DPoS) Modify the Basic PoS Model?
Delegated Proof-of-Stake (DPoS) introduces a layer of democracy where coin holders vote for a limited number of delegates or 'witnesses' to validate transactions and govern the network. Instead of all stakers participating directly, only the elected delegates are responsible for block production.
This makes the network faster and more scalable than pure PoS but potentially less decentralized, as power is concentrated among a smaller group of delegates.
Glossar
Faster Transaction Finality
Finality ⎊ Faster transaction finality, within cryptocurrency, options, and derivatives markets, signifies the irreversible completion of a transaction or settlement, eliminating the risk of rollback or alteration.
Dpos
Architecture ⎊ Delegated Proof-of-Stake (DPoS) is a consensus mechanism architecture that streamlines the block production process by employing a limited, elected set of delegates, often called Block Producers.