The Fairness of Delegated Proof of Stake(DPOS)

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Blockchain which is the underlying technology behind every cryptocurrency have many ways in which its network can be secured. Some blockchain use proof of stake, proof of work, proof of importance and so many other consensus rules in securing their networks. But there is something important about delegated proof of stake(DPOS).

So how does this work?

Delegated Proof of Stake was developed out of the passion of a renowned software, Dan Latimer to create a fair and less decentralised method of securing blockchain network that not only incentivize fewer people but every one participating in the system.

Bitcoin for example uses Proof of Work as its consensus rules for securing the network. Transactions are slower and fewer people control the network. Also in future, the network would be more centralised.

Delegated Proof of Stake is not an ordinary proof of stake which rewards only more of large coin holders, It gives priority to small coin holders by fair incentive distribution.

DPOS is based on reputation system and real time voting system. The delegates who create blocks and secure the network are voted based on what they have to offer and if they at anytime are not performing to expectations, the community members of DPOS based currencies can withdraw their votes and strip non- functional delegates off their position.

Delegates determine which transactions get added to the next blocks but have no power over the details of any transactions. If by chance a block fails, this will double the next block size.
In a DPOS consensus rule system, delegates are also paid for creation of new blocks.

It is worth noting that the same platform I am writing uses DPOS algorithm and Dan is also steemit Co Founder.