What Is a Delegated Proof-of-Stake (DPoS) System?

Delegated Proof-of-Stake (DPoS) is a variation of PoS where coin holders vote for a limited number of "witnesses" or "delegates" to validate transactions and govern the network on their behalf. This creates a representative democracy model.

DPoS systems are generally much faster and more scalable than traditional PoW or PoS due to the small, fixed set of validators, but they introduce a greater degree of centralization and potential collusion risk among the elected delegates.