As there are many terms to such a large project like Elastos and the Cyber Republic, we’ve decided to build a growing glossary of terms that can help the less technically acquainted understand better what the tech means and the impact it could have. This week we’re focusing on DPoS.
Term: Delegated Proof of Stake
“In a Delegated Proof of Stake (DPoS) consensus mechanism, which is a variation of PoS, coin holders can use their balances to elect a list of nodes to be possibly allowed to add new blocks of transactions to the blockchain. Coin holders can also vote on changing the network parameter. While PoS can be likened to winning a lottery, DPoS gives all coin holders more influence and ownership in the network. Proof of Work (PoW) can be likened to a true democracy, Proof of Stake (PoS) to an oligarchy, and Delegated Proof of Stake (DPoS) to a democratic republic.”
Elastos is not a strict DPoS; it is a hybrid model that is not only merged-mined with Bitcoin, but its DPoS consensus mechanism enforces community proposals that may include changes (even like different consensus mechanisms) such as new sidechains or architectural changes to the main code. PoW miners who fail to update won’t have their blocks signed by the Delegates, which means that they won’t create forks since their blocks are considered invalid.
All public blockchains need a way of determining consensus (machine agreement that certain data–like a funds transfer–is in-fact, real). Delegated Proof of Stake is a method of finding consensus in which specific machines (delegates) are trusted; therefore, what they verify a true is also trusted. These machines are voted on by the community, and if they do anything malicious or fail to do their job well, they can be voted out by the community as well, thus losing their trusted status as well as some (or all) of their staked 5000 ELA. DPoS is much more energy-efficient and faster than PoW. Since Elastos is a hybrid consensus model using DPoS and merged-mining and community consensus, it takes the strengths of each and bundles them together into a blockchain that can’t be forked, is highly efficient, and is very safe.