What is DPoS Delegate Proof of Stake ??
Hi. I am interested in the issue of Delegate Proof of Stake, how does it work, how does it differ from ordinary Proof of Stake and is there any earning potential? Could someone explain it in a simple way? Thanks
Hi. I am interested in the issue of Delegate Proof of Stake, how does it work, how does it differ from ordinary Proof of Stake and is there any earning potential? Could someone explain it in a simple way? Thanks
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Delegate proof of stake and traditional proof of stake are very different. The latter option is more of an incentive for large coin holders to freeze their coins, but is not necessarily beneficial for smaller coin holders. Since staking rates are based on the "weight" of the network, anyone with a small contribution will often see fewer "staking rewards" compared to those with much larger pots. It's not the best way to get paid. Delegate Proof of Stake works a bit differently. This is a more efficient PoS algorithm in general and seems to provide more decentralization when it comes to awarding staking rewards to more people. DPoS ensures reliable confirmation of transactions in the network. DPoS uses a real-time reputation and voting system to reach consensus. Put simply, you need to establish a panel of trusted sites, where all its members can create blocks and prevent non-trusted sites from participating. Delegates responsible for creating blocks cannot change transaction details. However, they can prevent certain transactions from being included in the next network block. Each transaction not included in the block or failed means that the next block of the network is twice as large. This somewhat prevents malicious intent to block certain transactions or blocks. Any fraud according to DPoS rules is impossible. Members supporting DPoS can vote to remove an inconvenient person as a delegate. Let me add that delegates in the DPoS ecosystem are paid for creating blocks and including transactions, and can use these funds to pay for marketing or lobbying activities that benefit the cryptocurrency network as a whole. The network stakers determine how much and how many delegates are paid for their efforts. If DPoS were added to the bitcoin network at some point, it could potentially speed up transaction times, even if it would increase inflation in the ecosystem. The most popular cryptocurrencies based on DPoS are: EOS, Cardano, Tezos, Tron, Icon, Lisk and Steem.
Delegate proof of stake and traditional proof of stake are very different. The latter option is more of an incentive for large coin holders to freeze their coins, but is not necessarily beneficial for smaller coin holders. Since staking rates are based on the "weight" of the network, anyone with a small contribution will often see fewer "staking rewards" compared to those with much larger pots. It's not the best way to get paid. Delegate Proof of Stake works a bit differently. This is a more efficient PoS algorithm in general and seems to provide more decentralization when it comes to awarding staking rewards to more people. DPoS ensures reliable confirmation of transactions in the network. DPoS uses a real-time reputation and voting system to reach consensus. Put simply, you need to establish a panel of trusted sites, where all its members can create blocks and prevent non-trusted sites from participating. Delegates responsible for creating blocks cannot change transaction details. However, they can prevent certain transactions from being included in the next network block. Each transaction not included in the block or failed means that the next block of the network is twice as large. This somewhat prevents malicious intent to block certain transactions or blocks. Any fraud according to DPoS rules is impossible. Members supporting DPoS can vote to remove an inconvenient person as a delegate. Let me add that delegates in the DPoS ecosystem are paid for creating blocks and including transactions, and can use these funds to pay for marketing or lobbying activities that benefit the cryptocurrency network as a whole. The network stakers determine how much and how many delegates are paid for their efforts. If DPoS were added to the bitcoin network at some point, it could potentially speed up transaction times, even if it would increase inflation in the ecosystem. The most popular cryptocurrencies based on DPoS are: EOS, Cardano, Tezos, Tron, Icon, Lisk and Steem.
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