The DPOS consentd system (Delegate proof of stake) is part of the 3rd generation cryptocurrencies such as EOS, TRON, etc.
The CEO of EOS and founder of Steemit was introduced by BITSHARES created by DANIEL LARIMER.
And it consists in delegating a certain amount of that cryptocurrency to a delegate who will take care of the blockchain resolution.
Unlike the previous POW and POS consent systems, the DPOS uses a voting system, where each vote is equivalent to 1 frozen token.
The features of this system are that:
- No one has control over the information;
- The network continues to function and move forward;
- Everyone can participate;
- It is Decentralized;
- No fees are paid in the network
- It has a low operating cost;
- You can do many more transactions per second than POW and POS.
How the DPOS consent system works
The consent system DPOS uses the voting system to decide who must resolve the blocks.
This vote is decided by those who freeze or put into play an amount of a specific cryptocurrency, and consequently have the right to vote.
The operating principle is similar to that of the POS system, the crypt freezing occurs in the Hot Wallet.
Inside there is a section where it is possible to freeze the tokens and delegate them to the names in the list.
A vote is equivalent to a token and cannot be repeated but can be canceled, and is valid until canceled.
In the blockchain of these cryptocurrencies that have the DPOS consent system, the transactions are not subject to a Fee.
This is because in freezing the tokens, in addition to voting, you have resources such as the power in Tron, or the ram in Eos, which are used for transactions within the blockchain.
Each resource is consumed at each transaction, and is recharged at any given time.
This makes the network very fast, inexpensive and more scalable than POW and POS systems.
The Pros and Cons of the DPOS consent system
This system has pros and cons that we can identify as follows:
PROS
- Low cost of execution;
- Low equipment maintenance;
- Transaction speed;
- No transaction fees;
- Many more Transactions per second.
- The network is more scalable
CONS
- Many cryptocurrencies are much more centralized;
- Tokens after being frozen take at least 3 days to be moved.
Cryptocurrencies like EOS have a more centralized structure when the validation of the blocks is in the hands of 20 validators.
This could be a credibility problem of the cryptocurrencies themselves.
Conclusion
This system tends to improve the previous POW and POS, as it increases the number of transactions and the absence of fees on the network.
This could be an improvement for blockchains that use Smart Contracts, as high usage can cause network slowdowns.
With this system, this problem is greatly reduced, for example the Ethereum network when in 2017 it slowed down with very high taxes for excessive use of dapps.