1 Proof-of-Stake (PoS) has been one of the major consensus mechanisms in the crypto space. 2 Delegated Proof-of-Stake (DPoS) is a vertical that branched out of PoS. 3 They both bring better functionality and offer new possibilities to crypto-backed projects. The consensus mechani...
- 1 Proof-of-Stake (PoS) has been one of the major consensus mechanisms in the crypto space.
- 2 Delegated Proof-of-Stake (DPoS) is a vertical that branched out of PoS.
- 3 They both bring better functionality and offer new possibilities to crypto-backed projects.
The consensus mechanisms determine the generation and management of cryptocurrencies. They decide how developers will produce tokens and how the network will treat them. Initially, there were two major consensus mechanisms, Proof-of-Work, and Proof-of-Stake.
Understanding the Basics
While PoW focused on verifying the accuracy of new transactions, PoS was all about staking the tokens. With time, PoS emerged as a more adaptable mechanism. It enabled projects to easily create tokens and facilitate operations as well. Today, many crypto tokens and projects use this consensus mechanism.
Its scalable structure has spawned off some more methods, and a prominent one is Delegated Proof-of-Stake (DPoS) which enhances the speed and scalability of the network. This variant is more inclusive. It opens the transaction validation system to the whole system. It even makes those participants validators who cannot meet the criteria.
Both these mechanisms are instrumental in the working of various cryptos. To truly understand the differences and functionality of both, one needs to check the factors that differentiate them.
Factors That Distinguish PoS From DPoS
There are some key points that define the natures of both. Knowing them helps one make better decisions in business and transactions.
Block Creation
The PoS protocol uses its staking power to run its validator selection process. When the users have a certain amount of tokens, they are eligible to validate transactions. In the DPoS structure, token holders elect the validators following a pre-determined voting system.
Governance
As hinted above, governance in DPoS is more democratic than in PoS. While the former brings a polling system, the latter focuses on giving authority to every user. The PoS even implements a hard fork, a major change to the underlying code.
Transaction Time
If one compares the transaction times, DPoS’ is shorter than PoS’. The former maintains a smaller network that takes minimum time to verify the transactions. The count goes between 20 to 100. On the other hand, the latter handles a much larger network.
Delegates
In the DPoS network, delegates become an essential factor. They propose and induct changes that decide the future of blockchain mechanisms. Whenever there are new changes suggested, all the members vote on them. On PoS, no such exercise exists. Delegates don’t play any role here.
Witnesses
Witnesses are node operators accountable for adding new blocks to the network. In the DPoS environment, they meet the hardware specifications. They also attract votes and maintain rewards. In the PoS setting, they don’t have any specific role to play.
Conclusion
PoS and DPoS both work for the betterment of the network. They bring new possibilities to the fore, supporting the sustainability of blockchain. In their ways, they benefit the users and give them an ideal environment to execute transactions. Moreover, they receive timely upgrades and bring innovations for the users. Based on the requirement, some projects opt for PoS, and some go for DPoS. In terms of functionality, both are able to fulfil the requirements