May 25, 2022

Introduction Delegated Proof of Stake (DPoS)

Delegated Proof of Stake (DPoS) is a widely used consensus algorithm today. In this article, we will learn what Delegated Proof of Stake (DPoS) is, the pros and cons of DPoS.

What is Delegated Proof of Stake (DPoS)?

Delegated Proof of Stake is a consensus algorithm invented by the co-founder of the EOS platform, Daniel Larimer, in which token holders vote to select representative nodes to run the network. The number of votes is determined by the number of platform tokens they hold. The selected Nodes will then be responsible for validating transactions and maintaining the blockchain.

DPoS attempts to solve the problems of both Proof of Work (POW) and the Proof of Stake (POS) systems in scalability. DPoS has a limited number of validators, usually ranging from 10 to 100, which makes blockchains using DPoS consensus easily scalable.

DPoS tries to solve the Blockchain Impossible Trilemma 

Current blockchain projects often revolve around three core concepts: decentralization, scalability, and security. Those are the 3 challenges that developers face in creating a scalable, decentralized and secure blockchain without compromising any aspect.

Blockchains are often forced to make trade-offs that make it impossible for them to achieve all three aspects perfectly:

Decentralized: Creating a blockchain system that does not rely on the control of a certain individual or group.

Scalable: The ability of a blockchain system to handle an increasing number of transactions and to be able to scale.

Security: The ability of a blockchain system to function as expected, protecting itself from attacks, bugs, and other unforeseen problems.


Take for example with the Bitcoin Blockchain, the blockchain is considered the most secure in the world, but in return Bitcoin's scalability is very low despite many technical improvements over the years, similar to the case of Ethereum.


The aspect of security and scalability are two-thirds of the attributes that blockchains using the Delegated Proof of Stake (DPoS) consensus choose for. These blockchains rely on a small number of nodes (usually 10 - 100) to maintain the consensus of the network, which ensures scalability and security, but on other hand, that means it is not completely decentralized.

Advantages and limitations of DPoS


The DPoS consensus mechanism greatly reduces the number of nodes participating in transaction validation. This makes it possible for the network to reach consensus in seconds, greatly improving the system's processing efficiency, solving the problem of scalability of blockchains, and making it suitable to operate in the real world


In terms of governance, the Delegated Proof of Stake (DPoS) consensus model has a clear governance structure when voting rights are limited to validator nodes. The model allows the network to make decisions more quickly than blockchains running PoW and POS consensus.


In addition, blockchains running Delegated Proof of Stake (DPoS) consensus usually have a limited number of validator nodes and do not require too powerful computer configuration, besides, delegators do not need to turn on the computer 100%. , only validators need to do so, so the power consumption of the entire network is greatly reduced. Compared to PoW & PoW networks, DPoS blockchains have the lowest operating costs.

Drawbacks of DPoS . Consensus

Delegated Proof of Stake (DPoS) works similar to a corporate board system, allowing those holding the majority of power to delegate transaction verification work to competent “experts”, and at the same time, they can also share the reward for participating in the production of new blocks of transactions.

This design has the limitation that they centralize power unduly on a small number of validator nodes. In theory, if these nodes collude with each other, they can dominate the entire network, although this is very unlikely in practice (no real cases have happened yet).

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