Blockchain Research

Understanding DPOS: Democracy and Blockchain in a Nutshell

Let’s think of a democracy: a nation where the most powerful elected official can be removed office if the nation’s people decide that the official is not acting in the interests of the common man. Delegated proof of stake acts on a similar level.

Consider the people in power in your life: bosses, judges, police chiefs, etc. What if, through the power of democracy, you were able to remove anyone from controlling aspects of your life?

What is DPOS?

DPOS allows users to effectively “remove” delegates that control the blockchain. This means that the users who are disenchanted with the way that a blockchain is run can remove the people in power. DPOS brings democracy to blockchain, effectively circumventing issues facing proof of work (POW) systems where the richest users with the strongest mining operations control network validation.

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History of DPOS

Eons ago (2014) Daniel Larimer of EOS fame theorized that bitcoin mining would eventually become centralized due to mining pools. Along with fighting centralization, Larimer wanted to figure out a way to scale Bitcoin’s transactions. Thus, he came up with DPOS to combat Bitcoin’s energy-inefficiency, slow transaction speed, and centralization.


Members of a particular DPOS coin will vote for delegates who secure the blockchain network by validating transactions. The top delegates earn block rewards as long as they show that they are continuously acting in the interest of the overall network community. If they are not, users can effectively vote out these members, effectively “firing” the delegates.

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DPOS allows the participating systems to bring decentralization to the masses by allowing anyone to vote on delegates. In addition, voting is always happening in a DPOS environment. As the network grows, more and more competition for delegates will pop up and delegates will need to show that they are always acting in the community’s interest to stay in power.

Note: This article is for research purposes only and is not an endorsement of any of the aforementioned project(s) nor is this article to be considered investment advice of any kind. 

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