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The Delegated Proof of Stake (DPoS) consensus algorithm is considered by many as a
more efficient and democratic version of the preceding POS mechanism. Both PoS and
DPoS are used as an alternative to the proof of work consensus algorithm, since a PoW
system requires, by design, lots of external resources. The Proof of Work algorithm makes
use of a large amount of computational work in order to secure an immutable, decentralized
and transparent distributed ledger. Contrarily, PoS and DPoS require fewer resources and
are, by design, more sustainable and eco-friendly. To understand how Delegated Proof of
Stake works, one must first grasp the basics of the Proof of Work and Proof of Stake
algorithms that preceded it.
The Delegated Proof of Stake (DPoS) consensus algorithm was developed by Daniel
Larimer, in 2014. Bitshares, Steem, Ark, and Lisk are some of the cryptocurrency projects
that make use of DPoS consensus algorithm.
A DPoS-based blockchain counts with a voting system where stakeholders outsource their
work to a third-party. In other words, they are able to vote for a few delegates that will secure
the network on their behalf. The delegates may also be referred to as witnesses and they
are responsible for achieving consensus during the generation and validation of new blocks.
The voting power is proportional to the number of coins each user holds. The voting system
varies from project to project, but in general, each delegate presents an individual proposal
when asking for votes. Usually, the rewards collected by the delegates are proportionally
shared with their respective electors. Therefore, the DPoS algorithm creates a voting system
that is directly dependent on the delegates’ reputation. If an elected node misbehaves or
does not work efficiently, it will be quickly expelled and replaced by another one. In regards
to performance, DPoS blockchains are more scalable, being able to process more
transactions per second (TPS), when compared to PoW and PoS.
Delegated Proof of Stake (dPoS)
1. Terra (LUNA):
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global
payments systems.
Terra’s native token, LUNA, is used to stabilize the price of the protocol’s stablecoins. LUNA
holders are also able to submit and vote on governance proposals.
2. Tron (TRX):
TRON is one of the largest blockchain-based operating systems. It offers high-scalability,
high-availability, high-throughput, and the lowest cost support for all decentralized
applications in the TRON ecosystem. With the advantage of the DPoS consensus algorithm,
TRON brings unlimited possibilities to the TRON ecosystem via achieving high throughput
by improving TPS to the highest among the mainstream public chains. TRON provides an
innovative, pluggable smart contract platform to improve compatibility with Ethereum smart
contracts. TRON further expends the usage scenarios with its highly modularized
development framework, empowers the customized development. In the era of the Great
Voyage, the TRON ecosystem will start the era of cross-chain with its brand new cross-chain
protocol TICP, one chain can communicate with any other chain which implements TICP.
In July 2018, TRON acquired BitTorrent Inc., an internet technology company based in San
Francisco. The distributed technologies designed by BitTorrent can scale efficiently, keep
intelligence at the edge, and keep creators and consumers in control of their content and
data. More than 170 million people use BitTorrent products every month. The BitTorrent
protocol delivers 40% of the world’s Internet traffic every day.
On January 17–18, 2019, niTROn Summit 2019 hosted by TRON ended successfully at the
Yerba Buena Art Center in San Francisco, USA. NBA superstar Kobe Bryant was invited as
a special guest at the summit to talk with Justin and share his vision on entrepreneurship.
niTROn 2019 was a successful summit which gathered the most influential network
resources in the blockchain industry.
Kobe Bryant, CEO and President of Kobe Inc and NBA legend, will be attending #TRON’s
first international conference in San Francisco as a Special Guest
On October 9, 2019, Justin Sun was invited to attend Samsung Developer Conference; On
October 30, TRON established partnership with Samsung; In May 2020, TRON was listed on
Samsung Galaxy Store.
On October 22, 2019, TRON wallet was added to both web and mobile versions of Opera
browser. Following the cooperation, the 350 million Opera users can receive and transfer
TRX directly in Opera.
On February 14, 2020, the decentralized social platform Steemit entered into a strategic
partnership with TRON, marking its integration with the TRON ecosystem.
As of December 15, 2020 (HKT), statistics from TRONSCAN show that the number of
TRC20-USDT in circulation reached 6.5 billion. The number of TRON users by MainNet
accounts exceeded 17 million, which is 7 times that of EOS. As of December 15, 2020
(HKT), the daily number of new accounts on TRON had grown dozens of times higher from
3,000 to 80,000-100,000, projecting an annual growth rate of four to five fold. The block
height on TRON exceeded 25 million, and the total number of transactions on TRON
exceeded 1.39 billion. The block height of TRON DappChain exceeded 12.5 million, with a
total of over 25.6 million transactions and a daily circulation of over 5 million TRX. The
TRON ecosystem recorded a total of 1,064 DApps.
3. Tezos (XTZ):
Tezos is a new decentralized blockchain that governs itself by establishing a true digital
commonwealth. It facilitates formal verification, a technique that mathematically proves the
correctness of the code governing transactions and boosts the security of the most sensitive
or financially weighted smart contracts.
4. EOS:
EOS is a blockchain protocol that enables horizontal scaling of decentralized applications,
allowing developers to efficiently create high performance distributed applications.
5. XinFin (XDC):
XinFin is an enterprise-ready hybrid Blockchain technology company optimized for
international trade and finance. The XinFin network is powered by the native coin called
XDC. The XDC protocol is architected to support smart contracts, 2000TPS, 2seconds
transaction time, KYC to Masternodes (Validator Nodes).
The XDC Chain (XinFin Digital Contract) uses XinFin Delegated Proof of Stake (XDPoS),
with the intention to create a ‘highly-scalable, secure, permission, and commercial grade’
blockchain network. XinFin mainnet token XDC also creates an opportunity to utilize XinFin’s
real-world use-cases such as TradeFinex.org, helps small and medium businesses or
institutions originate their own financial requirements in a digital, fully structured manner so
that they can distribute them to the bank or non-bank funders themselves using a common
distribution standard.
6. ICON (ICX):
ICON is an interconnecting blockchain network. ICON can connect independent blockchains
without the use of additional third-party intermediaries. Various blockchains can
communicate with each other through the ICON platform. By connecting siloed blockchains,
ICON aims to become the largest blockchain in existence.
7. LISK (LSK):
Lisk is a blockchain application platform that inspires, enables and supports developers to
build blockchain applications written in JavaScript.
8. HIVE:
Hive is a Graphene based, social blockchain that was created as a fork of Steem and born
on the core idea of decentralization.
9. Velas (VLX):
Velas is a self-learning and optimizing blockchain platform for secure, interoperable,
extremely scalable transactions and smart contracts. Velas uses AI-Operated DPOS
(AIDPOS) consensus to secure the blockchain for high volume transactions processing
without sacrificing decentralization, stability and security.
10. Band Protocol (BAND):
Band Protocol offers a decentralized data oracle by making data readily available to be
queried on-chain, using delegated proof of stake (“dPoS”) to ensure data integrity. It aims to
be the go-to data infrastructure layer for Web 3.0 applications by providing decentralized,
curated off-chain data to smart contracts through oracles managed by its dPoS consensus
mechanism.
