EXPLAIN DELEGATED PROOF OF STAKE LIKE I'M 5

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I lượt thích lớn think of Delegated Proof of Stake as technological democracy. Just think about how many asshole bosses there are out in the world. Have sầu you ever wanted a system in which you, the employee, get to lớn fire your own incompetent boss? Well, there is a new system that is very cthảm bại khổng lồ the reality of employees getting lớn fire their own managers. It’s called Delegated Proof of Stake.

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If you’ve spent any time in the Bitcoin rabbit hole, you’ve sầu probably come across the terms Proof of Work, Proof of Stake, Proof of Importance or other consensus algorithms. But guess what, I’m not going lớn use words lượt thích algorithm or consensus in this article. I’m going to attempt lớn explain what Delegated Proof of Stake (DPOS) is in such a way that anyone, even a 5 year-old could understvà it.

Why Was Delegated Proof of Stake Invented?


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A blockchain engineer named Daniel Larimer realized that Bitcoin mining was too wasteful of energy. He also recognized that Bitcoin mining would become centralized in the future, with giant mining pools being in control of the Bitcoin network. Additionally, he wanted to build a system that was capable of transaction speeds like 100,000 per second. Bitcoin’s system was too slow due to lớn the way it was designed và the system it used: Proof of Work. He decided lớn invent & build a new system that used very little energy, was lightning fast and also very secure. Dan named this new system, Delegated Proof of Stake, or DPOS.


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What are the ingredients for DPOS?

A cryptocurrency, a blockchain, community of people, computers & rules.

(The examples below are taken from the Steem blockchain)

People in a particular cryptocurrency community vote for Witnesses to lớn secure their computer network.

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Only the top 100 Witnesses are paid for their service. The top đôi mươi earn a regular salary. Because many want lớn become a Witness, there are hundreds of backup Witnesses.
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People’s vote strength is determined by how many tokens they hold. This means that people who have sầu more tokens will influence the network more than people who have sầu very few tokens.
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As the community grows, it gets harder & harder khổng lồ remain a paid Witness due to lớn increased competition.
If a Witness starts acting lượt thích an asshole, or stops doing a quality job securing the network, people in the community can remove their votes, essentially firing the bad actor. Voting is always ongoing.

This system works because it is able to flush out bad actors và at the same time recognize new valuable members. The system is dependent upon active voters in the community, so educating new members about how the system works is essential khổng lồ the well-being of the system. I’ve sầu been in the Steem community for over a year & I’ve seen Witnesses come and go based on their actions và reputation.

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The links below contain more in-depth descriptions of Delegated Proof of Stake for those of you who want lớn underst& it on a deeper cấp độ.

Current cryptocurrency projects that use Delegated Proof of Stake:

BitShares: https://bitshares.org/

Steem: https://steem.io/

EOS: https://eos.io/

Lisk: https://lisk.io/

Ark: https://ark.io/

A Clip that explains DPOS:
Further reading and sources:

Dan Larimer invented DPOS in 2014: https://bitcointalk.org/index.php?topic=558316.0

DPOS updated White paper by Dan Larimer: https://steemit.com/dpos/
dantheman/dpos-consensus-algorithm-this-missing-white-paper

BitShares: http://docs.bitshares.org/bitshares/dpos.html

The Merkle: https://themerkle.com/what-is-delegated-proof-of-stake/

Facts about Daniel Larimer, the inventor of Delegated Proof of Stake: https://steemit.com/eosio/
xeroc/historical-facts-about-daniel-larimer-and-his-contributions-to-the-blockchain-industry

Overview of different consensus algorithms: https://blog.wavesplatsize.com/review-of-blockchain-consensus-mechanisms-f575afae38f2