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What is Delegated Proof of Stake (DPoS) |Explained For Beginners

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Have you ever wondered what Delegated Proof of Stake (DPoS) is and how it works? Well, you’re in luck because in this article, we will explain DPoS in a simple and beginner-friendly way. DPoS is a consensus algorithm that many consider to be a more efficient and democratic version of the Proof of Stake (PoS) mechanism. It is also used as an alternative to the energy-intensive Proof of Work (PoW) algorithm. By reading our articles, you will delve into the details of DPoS and learn more about its benefits and applications. Whether you’re new to the world of blockchain or looking to expand your knowledge, this article is a great starting point.

The DPoS consensus algorithm was developed in 2014 by Daniel Larimer, an American entrepreneur and software developer in the crypto space. It functions through an electoral process where coin holders vote for delegates who are responsible for validating new blocks. DPoS is seen as a more efficient and democratic version of its predecessor, the Proof of Stake algorithm. It offers better performance and energy consumption, eliminates intense competition among miners, and promotes decentralization. While DPoS is gaining popularity in the realm of cryptocurrencies, it’s important to stay informed as the industry is ever-evolving, and new algorithms are continuously emerging to improve the current system. So, stay tuned for more content and don’t forget to explore the rest of our videos on the Binance Academy. Thank you!

What is Delegated Proof of Stake (DPoS) |Explained For Beginners

What is Delegated Proof of Stake (DPoS)

Delegated Proof of Stake (DPoS) is a consensus mechanism used in blockchain networks to achieve consensus and validate transactions. It is an alternative to traditional Proof of Work (PoW) and Proof of Stake (PoS) mechanisms. DPoS is designed to improve scalability and efficiency while maintaining a high level of security in the blockchain network.

In a DPoS system, instead of every participant in the network competing to solve complex mathematical problems to add new blocks to the blockchain, the power to validate transactions and create new blocks is delegated to a select group of individuals known as “delegates” or “witnesses.” These delegates are chosen through a voting process by the stakeholders of the network, usually by holding a certain amount of the native cryptocurrency.

How Does DPoS Work

In DPoS, the consensus and block validation process is carried out by a limited number of delegates who are elected to represent the network and secure its operations. These delegates are responsible for validating transactions, creating new blocks, and maintaining the integrity of the blockchain.

DPoS operates on a round-based system, where each round consists of a predefined number of blocks. Within each round, the delegates take turns to produce and validate blocks. The order in which the delegates take turns is determined by a voting process, where stakeholders vote for their preferred delegates.

Once a delegate’s turn comes, they are responsible for proposing and validating a block. This involves confirming the legitimacy of the transactions within the block and solving any conflicts that may arise. Once the block is validated by the delegate, it is added to the blockchain, and the process continues with the next delegate in line.

History of DPoS

DPoS was first introduced by Daniel Larimer in 2014 as part of the BitShares blockchain protocol. It was developed as an alternative to PoW and PoS to address some of the limitations and inefficiencies associated with those mechanisms. DPoS aimed to increase transaction speed, scalability, and decentralization while maintaining security and avoiding the high energy consumption of PoW.

Since its introduction, DPoS has gained popularity and has been implemented in various blockchain projects. Some notable examples of DPoS-based blockchains include EOS, TRON, and Lisk. Its adoption has been driven by its ability to process a large number of transactions per second, making it suitable for applications requiring high throughput.

Development of DPoS

The development of DPoS has been a collaborative effort by researchers, developers, and blockchain enthusiasts. After its initial introduction in BitShares, the concept of DPoS was refined and improved upon by various individuals and teams.

One of the key challenges in the development of DPoS was finding the optimal balance between decentralization and efficiency. The selection process for delegates needed to ensure a fair and secure representation of the network, while also allowing for fast and efficient block validation.

Over time, different variations of DPoS have emerged, each with its own unique features and modifications. For example, some DPoS-based blockchains have implemented mechanisms for vote decay, where the voting power of stakeholders decreases over time to prevent the concentration of power in a few large stakeholders.

What is Delegated Proof of Stake (DPoS) |Explained For Beginners

Key Participants in DPoS

DPoS involves several key participants who play essential roles in maintaining the operation and security of the blockchain network. These participants include stakeholders, delegates, and block producers.

Stakeholders are individuals who hold the native cryptocurrency of the blockchain network. They have the power to vote for delegates and participate in the governance of the network. The voting power of stakeholders is usually proportional to their holdings of the native cryptocurrency.

Delegates, also known as witnesses or block validators, are the individuals elected by stakeholders to validate transactions and produce new blocks. They are responsible for maintaining the integrity of the blockchain and ensuring the smooth operation of the network. Delegates are typically chosen based on their reputation, technical expertise, and contributions to the network.

Block producers are the delegates who are currently producing blocks in a DPoS system. They are selected in a round-robin fashion, and each has a designated time slot to generate and validate blocks. Block producers need to have powerful computing resources and a reliable network connection to efficiently handle the block validation process.

Selection of Delegates

The selection of delegates in a DPoS system is typically carried out through a voting process. Stakeholders cast their votes for the delegates they believe will best represent their interests and contribute to the network’s development and security.

The voting power of stakeholders is usually proportional to the number of native cryptocurrency tokens they hold. This ensures that stakeholders with a higher stake in the network have a greater say in the selection of delegates. It also acts as a deterrent against malicious actors attempting to gain control of the network through a Sybil attack.

To promote decentralization and prevent the concentration of power, some DPoS systems implement mechanisms such as vote decay or vote splitting. Vote decay reduces the voting power of stakeholders over time, ensuring that they actively participate in the voting process. Vote splitting allows stakeholders to vote for multiple delegates, spreading their voting power across multiple candidates.

What is Delegated Proof of Stake (DPoS) |Explained For Beginners

Responsibilities of Delegates

Delegates in a DPoS system have several responsibilities to ensure the smooth and secure operation of the blockchain network. These responsibilities include block validation, transaction processing, and participation in network governance.

When it is a delegate’s turn to produce a block, they are responsible for validating the transactions within the block. This involves verifying the digital signatures, checking the transaction history, and ensuring that the inputs and outputs balance. If any irregularities or conflicts are detected, the delegate must resolve them before the block can be added to the blockchain.

Delegates also play a crucial role in processing transactions and ensuring their timely inclusion in the blockchain. They prioritize transactions based on factors like transaction fees and network congestion, ensuring that the most important and profitable transactions are processed promptly.

Additionally, delegates participate in the governance of the network, making proposals, and voting on important decisions related to the blockchain’s functionality and rules. This allows stakeholders to have a say in shaping the future of the network and ensures that its development aligns with the interests of the community.

Block Validation in DPoS

Block validation in DPoS involves a multi-step process carried out by the elected delegates. When it is a delegate’s turn to produce a block, they collect the pending transactions from the network’s mempool and organize them into a block. They then validate the transactions within the block by confirming their authenticity, integrity, and compliance with the network’s rules.

To validate transactions, delegates check the digital signatures of the transaction senders and verify that they have sufficient funds to complete the transactions. They also validate the transaction inputs and outputs, ensuring that the inputs are not spent previously and that the outputs balance correctly.

Once the transactions are validated, the delegate adds them to the block and generates a hash value for the block. The hash value serves as a unique identifier for the block and is used to link it to the previous block in the blockchain. The delegate then broadcasts the validated block to the rest of the network, and other nodes verify and add it to their local copy of the blockchain.

What is Delegated Proof of Stake (DPoS) |Explained For Beginners

Benefits of DPoS

DPoS offers several benefits that make it an attractive consensus mechanism for blockchain networks. Some of the key benefits include:

  1. Scalability: DPoS allows for high transaction throughput, making it suitable for applications that require fast and efficient processing of a large volume of transactions. By delegating block validation to a limited number of delegates, DPoS significantly improves scalability compared to PoW-based systems.

  2. Energy Efficiency: Unlike PoW, which requires miners to solve complex mathematical problems, DPoS does not rely on intensive computational calculations. This makes DPoS more energy-efficient and reduces the environmental impact of blockchain networks.

  3. Governance: DPoS allows stakeholders to participate in the governance of the network and have a say in decision-making processes. By voting for delegates, stakeholders can influence the direction of the blockchain and ensure that their interests are represented.

  4. Decentralization: While DPoS involves a limited number of delegates, the voting process and the ability to elect new delegates promote decentralization. With proper mechanisms in place, DPoS can distribute power more evenly among stakeholders and prevent the concentration of control in a few hands.


Delegated Proof of Stake (DPoS) is a consensus mechanism that offers scalability, efficiency, and governance capabilities in blockchain networks. By delegating the block validation process to a select group of delegates, DPoS achieves faster transaction processing and reduces the energy consumption associated with traditional consensus mechanisms.

Through voting and participation in network governance, stakeholders play an active role in shaping the future of the blockchain network. DPoS has been successfully implemented in various projects, and its benefits make it an attractive option for applications requiring high throughput and community involvement. As the blockchain ecosystem continues to evolve, DPoS has proven to be a valuable alternative to traditional consensus mechanisms, paving the way for increased scalability, efficiency, and decentralization in blockchain technology.

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